Dairy News Oct 25 2011

Page 1

Northland farmers taken to task over effluent management Page 4

october 25, 2011 Issue 257

www.dairynews.co.nz

golf balls and cows

taking a cue from ireland

Page 10

Pages 20-21

Law sides with farmer

Better milking performance

Where to now? LIC, DairyNZ cannot agree on industry good database ownership PAGE 3

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Dairy News // october 25, 2011

3

news

Dairy database deadlock SUDESH KISSUN

National milk wave surprises Fonterra

Page 13

Pond design hits the right note

Page 19

Food for thought on feed pads

Page 25

News............................................................3-15 Opinion..................................................... 16-17 Agribusiness............................................ 18-19 Management...........................................20-25 Animal Health......................................... 26-30 Farm Dairies & Equipment.................... 31-37 Machinery & Products.......................... 38-42

FARMER-OWNED LIC is rejecting DairyNZ’s bid to wrest control of the industry-good database through regulation. DairyNZ has written to Agriculture Minister David Carter. LIC chief executive Mark Dewdney believes DairyNZ has asked for regulatory approval to take over the database. Dewdney says LIC would not support any such regulation. It is also in contact with Carter. LIC is refusing to cede control saying its commercial database is a result of multi-million dollar shareholder investment over generations. “We believe DairyNZ has asked the minister’s office to look at regulatory approval to take information and data from our assets. We wouldn’t support that,” Dewdney told Dairy News. The dispute centres on recommendations promulgated in a herd improvement database review – the ‘Anderson Report’. One recommendation is to shift control of 46 fields in a core database from LIC to DairyNZ.

Dewdney says there is no disagreement over that. However, LIC is resisting moves by DairyNZ to take additional data fields, intellectual property and assets developed by the co-op. “We are not prepared to give up additional data fields and assets because they are critical to our business. We have built a very successful business owned 100% by farmers. Every dollar has been either invested into R&D or paid back to our farmers as dividends.” Dewdney says it strives to remain 100% farmer-owned and on sound commercial footing. The dispute became public two weeks ago when DairyNZ chairman John Luxton issued a media release saying negotiations with LIC had hit a roadblock. However, LIC says the matter is still on the table for discussion and questioned DairyNZ for making the issue public. The public spat prompted a warning from Carter. He wants both LIC and DairyNZ to work out a solution otherwise he will be forced to intervene. Last week both parties

seemed to have heeded Carter’s advice. DairyNZ chief executive Tim Mackle says they will continue to talk with LIC. “DairyNZ and LIC will work further on the issue and comment when there is further to report.” For his part, Dewdney says there is no row between LIC and DairyNZ. “There are differences over who controls the database but we will work things out.” A spokeswoman for Carter says he has spoken to both parties but there are no plans to meet at this stage.

Mark Dewdney

What DairyNZ wants

Unacceptable, says LIC

DAIRYNZ IS adamant that to effect the Anderson Report’s recommendation the full LIC database must be supplied to the Dairy Industry Good Animal Database (DIGAB). It wants: • The Core Database shifted from LIC control and management to that of industry good (DairyNZ); • DairyNZ and NZAEL (New Zealand Animal Evaluation Limited) to have full control of BW (Breeding Worth) for both bulls and cows; and • Data fields required for animal evaluation and industry reproductive and animal health monitoring – additional to the 46 regulated core fields – to be supplied to DIGAD (Dairy Industry Good Animal Database).

LIC CHAIRMAN Stuart Bay says its directors have clear duties of

care to the cooperative andv shareholders. “We will not simply give those things away but we have attempted to negotiate in good faith with DairyNZ to achieve the transfer of the core database. “To date we haven’t reached agreement but LIC’s understanding was that the matter was still on the table for discussion and we are extremely disappointed DairyNZ has decided to make this issue public when farmers would clearly prefer both parties to reach a settlement in the best interests of the industry. That remains LIC’s goal. “The model DairyNZ proposes is not compelling and would mean significant increased cost to farmers.”

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Dairy News // october 25, 2011

news

Council blames arrogance for farm effluent breaches DairyNZ are too soft on farmers who refuse to comply with simple basic standards. He has served seven years THE CHAIRMAN of the Northland on the NRC and has been mayor of Regional Council (NRC) has lashed Whangarei. He says he has good unout at what he calls some derstanding of rural issues. arrogant dairy farmers in “I’ve looked at these figures his region who continue to and they are simply not good flout rules on effluent disenough. We have some high posal. profile prosecutions but we as Craig Brown, formerly a council are getting constant a dairy farmer, says this criticism from the public about year 30% of dairy farmers Craig Brown the repeat offending by too checked by NRC staff were large a number of dairy farm‘significantly non compliant’ over ef- ers,” he told Dairy News. fluent disposal. I understand that farmers have acBrown also says Fonterra and cidents with their effluent disposal. PETER BURKE

Northland Regional Council says 30% of farmers checked by the council flouted effluent managment rules.

But this is about the arrogance of some very well-known, significant people in our community who are dairy farming and who just purely and simply refuse to do anything about the problems on their farms.” Brown says Fonterra must get tough with recidivist farmers just as a parent has to with a child who’s misbehaving. “Fonterra is the head of the

‘Fonterra doing its best’ NORTHLAND DAIRY farmer Simon Couper, chairman of the Fonterra Shareholders Association, says he’s not aware of the specific problems raised by Craig Brown. He will discuss the matter with him. But Couper admits some farmers have let the side down despite Fonterra having schemes in place.

The best way of getting overnight. But it will get the industry into betharder for farmers who ter shape is to encourage are repeatedly offending people to do the right and taking no steps to thing, offer them help and rectify the situation.” show how their effluent Couper says most systems can be improved, farmers realise how imhe says. portant it is to operate Simon Couper “Fonterra has those in a sustainable way and things in place, but it won’t happen that consumers are aware of this.

“This is about the arrogance of some very wellknown, significant people in our community who are dairy farming and who just purely and simply refuse to do anything about the problems on their farms.” dairy household and it needs to get to its farmers and work out a way by which they can perform in all areas. “I’ve had ongoing discussions with Fonterra about the issue and told them though the Clean Streams Accord has helped, it isn’t brilliant. Something is wrong with the industry if they can’t sort this out.” Using a stick instead of a carrot may be the answer, says Brown. If people are hit with a monetary penalty they don’t like it and pretty soon straighten up. There’s a limit to the number of warnings that can be given to farmers, he says. “Maybe the penalties aren’t big enough. Maybe we are not prosecuting. Serving abatement notices time

after time leads them into a false sense of security – believing the council will do nothing. There is no choice but to hit them hard as you possibly can.” Brown says he’s receiving letters day after day from members of the public complaining about dairy farms. He cites an instance where a kayaker noted the water in a stream was brown just below a certain dairy shed. But though, it seems, effluent ponds can’t be fixed, farmers get problem cars repaired and likewise their boats. “I don’t take back what I’ve said. If I’m in the shit with farmers, so be it,” Brown says.


Dairy News // october 25, 2011

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news

No regrets, says departing regulator THE FORMER regulatory and planning manager at Horizons Regional Council (HRC) says the few dairy farmers not complying with their consents in the region are almost making a conscious decision not to comply. Greg Carlyon, who recently quit the council after seven years in the position, was frequently criticised by farmers for his efforts to get farmers to meet the council’s environmental rules. He says complying is straightforward and not as hard as some farmers would suggest. Carlyon says it’s time Fonterra imposed on non-complying farmers some of the restrictions they talked about three years ago but have not acted on. He concedes that’s challenging because it’s a farmer owned cooperative. “This is isn’t just about Fonterra. An increasing number of farmers are supplying milk to independent companies and their interest and engagement in the issue is non-existent. Fonterra is putting a huge amount of work in at farm level with field staff

Greg Carlyon

but the repercussions for poor performance are currently not driven by industry at all. “At the farm level the dairy industry is doing a good job in the region. They’ve got three people dedicated to that, two of whom have actually worked for the regional council. The industry is trying to get things squared up and I have a huge amount of trust and faith in those people.” Carlyon says the vast majority

of dairy farmers are doing everything they can to comply but HRC still has an unsatisfactory rate of serious non-compliance. “This year it’s sitting between 15% and 20%. In previous years it’s been higher. That indicates four out of five farmers are doing exactly what is asked of them. HRC has worked very hard in the last two years to get that rate down. We’ve done that with farming groups and it’s been really successful. I’ll put money on it, that in 12 months you’ll see that drop as the success of the programme comes to bear.” In the end, the onus for compliance sits with the farmer and not the council, Carlyon says. “But the regional council needs to stand really firm in holding people accountable for the consents they hold – including those discharging to council treatment plants, as much as dairy farmers.”

in brief Farmlands board election

Carlyon has left Horizons because he can’t understand or accept the direction the present council is taking and he has concerns about governance issues – similar to those raised by the Office of the Auditor General in her recent report on HRC. “The council talks about a better balance between economy and environment and I would simply ask the question: was our previous approach not a balanced one?’ ” He is also critical of some farming leaders. The messages farmers in the field were getting from their leaders were not always correct, he says. “I’ve been involved for seven years at the front end of some contentions issues on behalf of council. Some groups have personalised that and this is something I really regret. But do not I regret front-footing important issues – not by any stretch.” Carlyon says he congratulates incoming farmer councillors for their desire and courage to resolve problems outstanding.

Dairy prices snap downward trend A SMALL rise in average dairy prices

is not the start of an upward trend, says ASB’s chief economist Nick Tuffley. Rather prices are starting to stabilise after several months of fractional decline. Fonterra’s GlobalDairyTrade (GDT) auction last week recorded its first price rise since June. Average prices rose 1.7%. Whole milk powder rose 5.7% to $US3,503/tonne and skim milk powder gained 3% to $US3,292/t. However, anhydrous milk fat fell 1.7% to $US3,645/t and milk protein concentrate fell 6.4% to $US6,295/t. Tuffley says dairy prices have remained

“roughly the same” over the past few months. “We’ve had fractional falls in prices and it seems prices are starting to stabilise. It’s too early to say this is the start of an upward

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swing,” he told Dairy News. A strong supply out of Europe caused prices to dip. All eyes will be on GDT in the coming weeks as the EU dairy season ends, he says. “There is a possibility we may see prices edge up but we’ll have to wait and see.” The next GDT auction will be held on November 1. In last week’s auction rennet casein tumbled 14% to $US7,040/t. Butter milk powder fell 1.9% to $US3,019/t and cheddar fell 8.4% to $US3,497/t. There were 120 winning bidders from 149 participants over 12 rounds. The platform had 443 qualified bidders, up from 427 at the last auction.

FORMER FEDERATED Farmers president Charlie Pedersen is one of seven candidates vying for a Farmlands Trading Society board seat. Others are Neil Pennington, Taranaki; Andy Russell, Manawatu; Owen Bonnor, Kawhatau Valley; Roger Landers, central Taranaki; Gordon McKellar, Fielding; and George McNie, Kawhatau Valley. Landers, who milks 250 cows, says he is a strong believer in the cooperative system. “I support clear and effective governance, and robust debate around the board table, when needed, showing clear purpose and accountability.” The western ward covers Te Kuiti, Taumaranui, Taihape, Feilding, Palmerston North and Otaki. Retiring director Ross Linklater is not seeking re-election. Voting closes 4pm on October 28.

Milksmart workshops

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Dairy News // october 25, 2011

7

fonterra board candidates

Clamour for Fonterra board Fonterra director Greg Gent’s retirement from the board spurred a spate of applications for a seat at the top table. No fewer than eight candidates have made it past the first hurdle – the candidate assessment panel – and next week they, plus two incumbents seeking reelection, hit the road to front at shareholder meetings from Invercargill to Kaitaia. Andrew Swallow gives a preview.

Gray Baldwin FOR ALL its size, Fon-

terra stands out as the New Zealand cooperative with the most potential to grow, says Gray Baldwin, a dairy farmer from Putaruru who has branched out into senior management roles and multiple directorships in the past ten years. He lists Fonterra’s priorities as: growing globally, tidying up our image at home, and sticking to our core business of processing and marketing

milk. “If we don’t grow our milk supply overseas, our dominant marketing and export position in the world will be lost over time,” he says. But he’s not talking about more Fonterra farms. “Talk of 20 farms in China leaves me cold. Fonterra is owned by farmers; it is not a farmer.” On industry image, Baldwin says there are “too many well meaning

people trying to have a stake in my muckpond” and they’re all using farmers’ money to do so. National standards are needed and Fonterra needs to take the lead to pull things together.

ing a stint working in Australia. Now 47, he’s a director/shareholder of two equity partnerships, owner of a dairy/ bull beef drystock farm, and has a couple of nonfarming directorships. He says Fonterra needs to finalise domestic issues such as DIRA, capital structure, and lock in a “license to operate”. “We need legislation which works and is fair and equitable to the people of New Zealand and to Fonterra and its

shareholders. “Beyond this, it is about identifying opportunities that align with the purpose and strategy of Fonterra that will deliver a profitable and sustainable return.”

grant cochrane

trevor hamilton

MULTIPLE OTAGO

ROTORUA CANDIDATE Trevor Hamilton

dairy farm owner Grant Cochrane sees Fonterra’s position in global markets as the key to its future. “We face many challenges within our boundaries with DIRA, competitors, environmental groups and politicians trying to gain popularity. However our real challenges lie offshore in the markets we are so reliant on,” says the former high-flying currency trader. Eleven years working around the world for some top banks financed his move into farming in 1999 and until recently he was managing day-to-day operations across three properties totalling 750ha. “While the decision to leave a lucrative career certainly wasn’t understood by many of my peers it was the best decision for our family and reflects our commitment and passion for farming and New Zealand,” he says. His currency and market making skills are highly relevant to Fonterra, he believes, and “relying on what has worked for the last 10 years will certainly not work in the future,” he warns.

says he would be “a farmer director in the true sense of the word, having milked cows for some 26 years.” He and wife Harriet’s 36-year career path through the industry is the classic worker, to sharemilker, to ownership and now multiple farm, family company structure supplying 2.37 million kgMS. “We take much pride that we have four [of our] children employed within our group of dairy farming companies... in Canterbury and Rotorua.” Farming in those areas, and with previous experience in Waikato and Taranaki, bring a “a good understanding of the issues in most

regions.” Communication is a key challenge for the cooperative, says Hamilton, as it is “the very glue” that will hold an increasingly diverse shareholder base together. For example, use of retention funds needs relaying “with the utmost clarity”. He says he’s “quite comfortable” with TAF. • More profiles on page 8

ken hames WHAT I want for Fonterra is “first and foremost for Fonterra to remain a cooperative which delivers real benefits to its farmer shareholders,” writes Northland candidate Ken Hames. “The best milk price is a key focus as well as seeing our investments show a profitable return. Delivering this is the best way to retain shareholders.” Hames grew up on a sheep-and-beef farm and bought his first dairy farm aged 24 follow-

maurice hardie “I’M BIG, I’m ugly, but I’m smart and I want your vote.” That’s the opening salvo of Southland supplier Maurice Hardie’s candidate profile. Having worked his way up to senior management in the Australasian food industry, he bought his first farm in 1995 and now has five milking platforms and two runoffs. “I am a believer in the cooperative ethos of one for all, and all for one.” He says he offers what he wants and expects

from any board member: experience from other industries; good governance skills; short, medium and long-term strategy; and understanding of rural communities, among other things. Fonterra still has some of its original goals to meet and Hardie questions whether it has “an appropriate management structure, or are we just expecting too much? “I don’t think so. Do you?” He also questions whether shareholders accept and understand the

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Dairy News // october 25, 2011

fonterra board candidates

jan marten kingma DUTCH-BORN SOUTHLAND dairy farmer Jan

Kingma says most of his business experience has been in Europe with companies such as Wessanen, Koopmans and BP Nutrition. That’s exposed him to “many aspects of the international agribusiness industry and taught me the art of managing at a

distance... an important attribute for a director of an international company such as Fonterra.” Several board memberships have further developed those skills, he adds. He backs 100% farmer ownership of Fonterra, but that means farmers will have to provide all the equity needed to

john monaghan grow. The Shareholder Fund and TAF could help but “we have to wait for the final draft to judge whether it will provide sufficient safeguards...”. With Fonterra’s main businesses being ingredients and consumer, he hints at the challenge that presents. Other agribusiness and food companies have historically had to

FORMER SHAREHOLDERS council chair, now

chose to either be a consumer food company, or a commodity/ingredients business, he notes.

incumbent director seeking re-election, John Monaghan, makes three commitments the lynchpins of his profile in the candidate handbook: to drive performance; to take New Zealanders with us; to take the hard decisions. “The best decisions

are not necessarily the most popular decisions,” he writes under the last of those headings. “... [The online trading platform] GlobalDairyTrade was not the most popular innovation when introduced, but look how well it is serving us now.” Fonterra, like any organisation, must relate to all its stakeholders, and while the focus has rightly been on shareholders, staff and customers, similarly strong relationships with all New Zealand are needed. “The big goal is to capture the hearts and minds of all New Zealanders.... Convincing

New Zealanders to back us is a top priority for me and I want to make it a priority for all members of our staff and our farmer shareholders.” Monaghan and wife Sarah are director/ shareholders in farms in Wairarapa and Canterbury supplying Fonterra and previously had dairying interests in Victoria, Australia.

jim van der poel AS A founder director of Fonterra, Waikato-based Jim van der Poel says he still believes “Fonterra is the best option we have to enhance our, and the next generation’s, future.” His key objectives for the cooperative are to: see it pay the most competitive milk price; invest in its future by adding value to domestic milk and through offshore investment; transition to TAF and remove redemption risk; retain farmer ownership; help drive underlying business performance. “One of my biggest concerns is that we collectively undervalue what we have in Fonterra. [The co-op] can deliver more value from milk collected in New Zealand than our competitors.” It also has the ability to help all New Zealanders enjoy a better standard of living. “There is no argument we need to be accountable for our performance but we should challenge anyone who tries to undermine what we have created to date and stop us from realising the opportunities [ahead].” From sharemilking 120 cows at Te Awamutu in 1980, Van der Poel and wife Sue have built a 1900cow, multiple farm business in Waikato. They are also equity partners in Canterbury farms carrying a total of 16,000 cows, and a 4000 cow operation in Missouri, USA.

david macleod TARANAKI-BASED candidate David Macleod

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says in addition to strong governance experience, he would bring to Fonterra’s board an understanding of “what it takes to achieve goals ‘in society.’ “What I mean by this is that we need New Zealand to be supportive of Fonterra’s aspirations. That means ‘bringing society along with us’ as we move forward.” Getting the balance right is one of three challenges he flags for the cooperative. It requires “pragmatic solutions that ensure shareholders can continue farming sustainably,” he says. “We must build key relationships that allow for a balance of both economic and environmental outcomes.” His other two challenges are: “growth without compromise” and “finding the next Asia.” “There is a huge opportunity for the Co-operative in Asia – most notably China and India.”

• Lachie Cameron, Hamilton was invited to supply his profile to Dairy News but did not respond.


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Dairy News // october 25, 2011

news

Stray golf balls swing farmer into action PETER BURKE

COWS AND bulls can get

house and demanding their golf balls back. A big problem was finding golf balls in the hay and silage paddock. “If the golf balls go through the chopper and get cut into small

Don and Kim Findlayson, who own the golf club.

the case has ended up in court with an outcome that hasn’t surprised TaitJamieson. “The issue has been thousands of golf balls landing on our farm and no practical way of stopping them coming over. An expert retained by the golf course people gave the opinion in his evidence that even good shots would land in our place – not just the bad shots, so that explains why we’re picking up over 100 golf balls every week.” On top of that were the beer bottles, broken glass and abuse from people coming to the

sharp pieces and then get distributed in the silage all over the farm, we were facing having our farm covered in chopped golf balls which could affect the health of our animals.” Tait-Jamieson says the judge ruled this piece of land totally unsuitable for a 9-hole golf course. “We never believed they could fix the problem because we knew it better than they did. The golf course is only 20m wide in places. We asked for free and undisturbed possession of our land and the quiet enjoyment of it, and judge held that we had an absolute right to that. The

judge said no farmer in the country should have to put up with that level of nuisance.” The owners of the Brookfields Park course, Don and Kim Findlayson, say they are devastated and shocked at the decision. The course is used by about 140 members but attracts a high number of casual players. The Findlaysons estimate 25,000 rounds of golf are played each year on the course. Before they bought the course in 2000 they had businesses interests in Wellington. They came to the Manawatu for lifestyle reasons. Kim Findlayson says the Tait-Jamiesons claimed in court that 20,000 golf balls had

Catherine Tait-Jamieson has had enough of stray golf balls landing on her organic farm.

landed on their property since 2002 but says this needs to be seen in perspective. “If you work that out – 20,000 over ten years, about 2200 golf balls a year which is three-five per day. Is that a nuisance? That’s one golf ball per day per hole,” she says. She says the Tait-Jamiesons began proceedings against them in 2003. They’ve had two mediations and done everything asked of them “They’ve asked us to stop the litter coming over and people coming

over to fetch their balls. For litter we’ve installed extra rubbish bins and that’s not an issue. “In relation to the trespass all the thirty stiles put up on the course by the previous owners in conjunction with the farmer to allow golfers to retrieve their golf balls have been taken out. “An electric fence has been put up and we’ve fixed all the fencing, some of which was in disarray.” Findlayson says they planted at least 2000 trees and hedging which is now 5m high

and they’ve put up ‘no trespassing’ signs. Don Findlayson says everything the farmer asked for was done. Further litigation is likely as the Findlaysons see this case as precedent setting and a decision which could affect other golf courses. The Tait-Jamiesons also say its precedent setting in that it’s about property rights. They want to continue farming peacefully and let their children who are now working on the farm eventually take over the business.

Property rights at stake PROPERTY RIGHTS are to the

fore in a judge’s ruling that a Manawatu golf course must close because of the nuisance players’ balls posed to a neighbouring dairy farm. The matter has no RMA implications as both the farm and the golf course are permitted activities under the district plan. Manawatu/Rangitikei Federated Farmers president Andrew Hoggard says farmers have to

comply with a range of restrictions to ensure neighbouring properties are not affected by their operations. “For example they must ensure their stock don’t get out, and dairy farmers can’t spread effluent within 20m of a roadway or 20m of a Golf balls that have landed on the water body. organic farm. “Farmers have all these rules ensuring they stay away seems fair that it should apply to from the boundary fence, so it everyone else.”

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along, but it seems cows and balls – of the golf variety – cannot. A district court judge has ordered a small 9-hole golf course on the outskirts of Palmerston North to close by the end of November because 20,000 golf balls have landed on the neighbouring organic dairy farm over the last ten or more years. Jamie Tait-Jamieson and his wife Catherine run 120 cows, 300 mainly polled Drysdale sheep and 400 ‘meat’ goats on their 200ha organically certified farm. They process the milk from their cows into organic yogurt sold under the Biofarm label in supermarkets around the country. They also produce a small amount of organic milk which is also sold in supermarkets and other outlets. Tait-Jamieson is a third generation farmer on this property, but his great grandfather started the Awapuni Dairy factory in Palmerston North so he comes from a long line of dairy farmers. His mother still runs an organics dairy farm in the Waikato. The issue of golf balls

on the farm dates back to 2000 when he warned the previous owners of the golf course that he was taking legal action. There are claims that the new owners were not aware of this. Eleven years on,

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Dairy News // october 25, 2011

11

news

Call to curb breeder protection ANDREW SWALLOW

A RECENT aborted High

Court case between a number of dairy bull breeders highlights what one of the parties believes is a restrictive practice detrimental to the New Zealand industry. While most, possibly all, breeding companies selling semen in New Zealand have a clause that prohibits sale of se-

men from first generation progeny, Liberty Genetics’ acting executive chairman Kevin Buckley believes it would be better if such clauses were removed. “You can’t use sires from other companies unless you have a specific agreement or licence to do so,” he explained to Dairy News. “The problem is the restrictive nature of it.” Such clauses don’t exist overseas so there is

a freer exchange of genetics, which, in theory, should speed genetic advancement and reduce the risk of narrowing the gene pool. The clauses came in here in the early 1990s and stem from the use of daughter production data to prove bulls. While some claim the clause protects a breeding company’s intellectual property, Buckley’s view is that the protection goes a generation too far – at least for conventionally

Duty to protect - LIC LIC, Liberty Genetics, and a group

the semen of LIC elite bulls which had been re-imported from Australia. In August, the High Court in Hamilton issued an interim injunction preventing Liberty Genetics from advertising or selling semen from the bulls and a substantive hearing was planned for early October. LIC says the agreement reached is as sought by LIC from the outset of the dispute, in that LIC-bulls have been permanently withdrawn from Liberty Genetics bull team and first generation progeny of any LIC bull will not be used in future. Announcing the settlement, LIC chairman Stuart Bay said the New Zealand dairy industry is a dynamic and generally integrated and collaborative community. “LIC recognises the role dairy genetics play in the vitality of the industry. We regretted the need to take court action but as farmer directors we have a duty to protect the multimillion dollar genetics investment of LIC shareholders”.

of breeders earlier this month reached an out-of-court settlement that saw Liberty Genetics withdraw all firstgeneration progeny of LIC bulls from its bull team, and make a contribution to LIC’s court costs. LIC said the settlement “validates LIC service rules and its IP protection clauses.” Earlier this year it issued legal proceedings seeking an injunction against Liberty and certain breeders for breaches of Clause 62 of LIC’s service rules. The clause prevents farmers from selling the semen of first generation male offspring of its elite artificial breeding bulls without a licence from LIC, but does not prevent farmers using first generation sons for use as natural mating sires in their own herds. LIC contended Liberty and the group of breeders were in breach of the co-operative’s service rules by selling semen from bulls bred from

proofed bulls. “With genomically tested [bulls] where there has been significant investment to bring that technology to the market I don’t have a problem with it, but that’s quite different from daughter proofed bulls. I see that as public information.” Buckley admits Liberty has a no-breeding-from-male-progeny clause in its semen supply terms but it’s a case of doing as the firm’s larger competitors do. Liberty has about a 5% share of the 4-4.5m inseminations/year market in New Zealand, he says, and its core aim remains the same as when it was founded 13 years

ago. “To provide semen to the market as cheaply as we can and in that way put pressure on the other [suppliers].” That’s not to say quality of genetics doesn’t matter to the firm, and over the years it has had more than its fair share of bulls towards the top of the Ranking Active Sires (RAS) lists, particularly in Jerseys, he adds. “We’ve been quite strong in that respect. At one point we had about 2% market share but about 7% of the bulls on the RAS list. We’ve been punching above our weight.” Liberty’s ability to provide cost savings stems from using young

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Dairy News // october 25, 2011

13

news

Co-op surprised by national milk wave PETER BURKE

THE ‘MILK wave’ sweeping New Zealand comes as

something of a surprise to Fonterra, says the director New Zealand operations, Brent Taylor. The result is adjustments to collection and processing. “Particularly unusual this season is that the increase is consistent across the country. There have been years when we’ve had regions which have had good springs, but typically there have been falls in other parts of the country which have evened this out. What’s been a bit different this year is a consistent improvement from Northland to Southland, with nearly with double-digit growth,” Taylor told Dairy News. Taylor says Fonterra has never before had this level of peak of milk, and this has taken place at time of natural growth in the sector of 1-3%. “What’s characterised this year is a much faster rise to the peak – much higher in percentage terms.” The peak of the season has just been reached in the North Island; it’ll be three weeks before the peak is reached in Southland, Taylor says. Fonterra has had to make minor changes to its product mix to enable it to cope with the record milk flow. Milk is moved between regions occasionally so that all plants are operating at an even capacity to cope with the peaks. “This may involve shipping milk from Northland to Waikato, or from Waikato to Taranaki, and Canterbury to Southland. We’re using rail to do this and also contract tanker operators. We normally use some contractors, but this year we’re using more than we normally do.” Causing this peak is a good autumn, benign winter and great spring, plus good cow condition and calving. “Farmers also had a reasonable amount of supplementary feed they didn’t need to use during the winter. This element of additional feeding through the spring has obviously had an effect on production.” But though it’s all good news now, farmers must be aware of the variability of the New Zealand climate. Taylor notes the possibility of a La Nina weather pattern during summer which could bring drying winds to eastern parts of the country. There’s no guarantee good weather will continue, he says. “With weather the test comes not when everything is working for you, but when everything’s working against you, and how you handle the curved balls from the climate. The industry is at the mercy of the weather. Last year we had tropical storms, earthquakes, snow and drought. So people say in the news media that the

climate is more variable and more extreme.” The present situation is akin to a surfer riding a wave. “Get on a big one and its happy days. But remember you can always get dumped by the wave and get the reverse.”

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Tanker limit boosted FONTERRA HAS got the green light to increase its tanker loading limit as milk production soars. The operating weight of co-op tankers has been raised from 44 to 45tonne until the end of the year by the New Zealand Transport Agency. As a result, Fonterra’s tanker fleet will be able to collect an additional 1.2 million litres of milk every day for the next three months. It gives the co-op more flexibility to manage the big increase in milk flows it is experiencing across the country. The co-op’s managing director trade and operations Gary Romano says a one tone increase in operating weight means every tanker can collect an additional 1,000L of milk on every run. With 450 tankers on the road during peak production, that’s a big help, he adds. “Managing all the extra milk is a huge job and it’s great that we’ve got Government agency support.”

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Dairy News // october 25, 2011

news

Effluent compliance rises in Canterbury - report EFFLUENT COMPLIANCE in Canterbury is

improving but there’s room for improvement, says DairyNZ. A Lincoln University report on the Canterbury dairy region says minor non-compliance is 25.4% and significant non-compliance 9.7% in 2010-11.

DairyNZ environmental extension specialist Jeremy Burgess says overall 64.9% of Canterbury dairy farms were fully compliant with their effluent discharge consent or permitted activity conditions. “But there is room for improvement – from

the design of the effluent system itself to ensuring conditions are right for its disposal. Farm effluent application must be well managed, applied to soil at the right time and place, to minimise any risk of ponding. “Irrigators must be

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set up correctly and the effluent applied at the lowest rate possible, taking into account soil type, topography and soil moisture. And all staff must know how to operate the system and how to troubleshoot.” Results presented at the Lincoln University Dairy Farm (LUDF) recently show the occurrence of common causes of non-compliance – effluent ponding, undiluted effluent and discharges in a buffer zone – are reducing each year. There is also high compliance with nitrogen application rates. The Canterbury Dairy Effluent Group, made up of representatives from DairyNZ, Federated Farmers, Fonterra, Synlait, New Zealand Dairies, SIDDC, AgITO and Environment Canterbury,

will continue its work this year to lift effluent compliance. SIDDC executive director Ron Pellow says adequate storage for the application system is critical for farmers to manage effluent irrigation more effectively. “It allows irrigation to be deferred until soil moisture levels are suitable. Storage provides greater flexibility to manage effluent and lessen environmental risk,” says Pellow. Dairy companies Fonterra, NZ Dairies and Synlait have also been part of the Canterbury Dairy Effluent Group since it was formed in 2009, working closely with farmers to lift the levels of effluent compliance in the region. AgITO recently joined to help boost regional work.

in brief Waikato results improve THE LATEST helicopter monitoring flight confirms an ongoing drop in significant non-compliance with the Waikato Regional Council’s effluent management rules. However, storage-related issues continue to be important when it comes to significant non-compliance. The latest flight – the second of seven for the season – was carried out on September 12 around Huntly and covered 139 randomly selected dairy farms. The council says 9% of the Huntly properties appeared to be significantly non-compliant with the permitted activity rules.

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Dairy News // october 25, 2011

15

letters / news

Make sure you’re in the know SO THEO Spierings is worried about “throwing the baby out with the bath water”. That is a concern very many of us have but I think we are concerned about different babies. Spierings is worried about losing the concept of the TAF agreement because of redemption risk; we are concerned about losing Fonterra. The redemption risk pales to insignificance compared to the risk we could face if we lose our 100% control of Fonterra. Farmers are quite within their rights to question TAF because the proposal we voted for has now changed. No longer will shares be held in farmers’ names but in the name of the custodian. Who or what will he/ it represent? It could be the nice man from down the road who understands our passion for our company or it could be [NZX chief

executive] Mark Weldon who has no understanding of cooperatives and has already publicly

Theo Spierings

stated that one of his achievements was bringing Fonterra to the NZX. Could the custodian insist on placing an independent director on our board, perhaps someone recently retired, looking for an interest? Could the custodian influence the composition of the payout, milk price vs share dividend? This is sheer speculation, but do we want to put ourselves in a position where this could become a reality? Shareholders must

Loss of income make the effort to be totally informed on every aspect of TAF, and because of the changes Fonterra surely has an obligation to keep shareholders more informed. I was shocked to read a 50% vote by shareholders council will carry the TAF proposal. Do you know how your shareholder council representative will vote? Meetings are being held in many areas. Please try to attend a meeting and if you have any doubts support the petition for another vote. We have a fabulous company, we are told we’re the envy of many. It would be a shame to put it in jeopardy because of a lack of understanding. Bay of Plenty is holding a meeting at the Awakeri Event Centre, Wednesday October 26, 7.30pm. Linda Virbickas Whakatane

IF FONTERRA directors are acting in the best interests of the company (Dairy News, October 11) why are they bringing in TAF? If another milk company starts up and they are paying the same price it is only natural they will cash up their shares, reducing their debt, and move to the new company. TAF in my view is not about the redemption risk, it’s about the loss of income from the people leaving. If the income this year was $20bn from 10,000 suppliers that’s about 2bn for every 1000 suppliers. If they still had the 13,000 suppliers they started with the income would have been a lot more. As more people leave, Fonterra’s income starts to drop. The only way to stop people leaving is to drop the share price so people ask “is it worthwhile my leaving or am I better off staying with what I know?” If TAF comes in and there are three times as many people leaving as there are conversions going in, I can’t see how the share price is going to stay where it is. The other side of the story is that if the share price drops, a lot of farmers will lose a lot of security. These farmers will not be happy and what’s the answer going to be? “Well, you voted TAF in.” Murray Beach, Havelock, Marlborough.

in brief Agreement shake-up

MAJOR CHANGES have been made to Federated Farmers’ sharemilking agreement. The 2012 version sets obligations regarding the Resource Management Act and a minimum 22% share of the milk cheque where there are fewer than 300 cows and the milker doesn’t share Fonterra’s dividend related payment adjustment. Other changes seek to safeguard children from farm hazards: a stock proof fence around the farm house and a safe place at the shed if children have to be there while their parents work. “If it was a Fletcher Building site you wouldn’t have a toddler wandering round. A farm’s no different,” Feds Sharemilkers’ chairman Ciaran Tully told Dairy News. The agreement is the result of “good faith bargaining” between Federated Farmers Sharemilkers’ and the Sharemilker Employers’ sections following feedback from members on the 2011 agreement. “It’s available now but it’s primarily designed for the season starting in 2012. What we didn’t want was people signing in November and then a new agreement coming out in January and them all having to sign again.” Tully says the agreement is written in plain English to make it easier for farmers to understand, and will, if necessary, stand up in the courts. “As with any commercial agreement, Federated Farmers asks the parties involved to first sit down and talk over issues. All the clauses in the agreement need to be read and discussed, as the outcomes will affect you if things go wrong.”

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Dairy News // october 25, 2011

opinion Ruminating

Editorial

Effluent strategy needs a rethink

Overloaded ATV

milking it... Cows have exotic tastes

australian COWS have exotic tastes in grass and like to congregate around water. These findings are from a study of the controversial reintroduction of cattle grazing in Victoria’s Alpine National Park. Four hundred cattle were let into six areas of the heritage-listed park in January, five years after the former Labor state government banned the practice. The Commonwealth intervened and the state government was forced to remove the cows in April. But the Victoria government plans to continue the trial to determine the effectiveness of cattle grazing as a fuelreduction strategy. The Department of Sustainability and Environment (DSE) released a report on the design of its cattle-grazing trial late on Friday afternoon. Among its key findings were that cows prefer exotic grass over native species and the most visible impact of cattle grazing was at watering holes, springs and along creeks. Cows don’t like steep terrain and dense foliage, and fences may keep them away from sensitive vegetation, the DSE report says. A spokeswoman for Environment Minister Ryan Smith says the government intends to proceed with the five-year trial. Opposition environment spokeswoman Lisa Neville believes the trial is a farce. “This report reveals nothing that wasn’t already known,” she says.

DEPARTMENT OF Labour officials would have been cringing at TVNZ’s show on its Seven network about a Nepali family dairy farming in Gore. The show gave interesting insight into how the couple, with two young children, are settling into the industry. But the segment ends with the family hopping onto an ATV and riding down the farm. With DoL harping on ATV safety, the footage of four people riding an ATV without helmets on national television will not go down with the bureaucrats.

Overstating dairy’s benefits

“HOW MANY of you have seen the ‘Got milk?’ ads with Aaron Rodgers and Greg Jennings?” Angie Edge of the Wisconsin Milk Marketing Board asked a roomful of elementary school students, invoking the names of two Green Bay Packers stars. Hands shot up. In Wisconsin – the US’s top cheese producer, with more dairy cows per square kilometre than any other state – it’s hard to miss the message that milk does a body good. Especially if you’re a child. That’s because the nonprofit milk board, funded by dairy farmers, spends about $US950,000 a year on talks, concerts, posters and a website promoting dairy’s health benefits to school children. The group has challenged others’ claims, such as a recent Wisconsin billboard – sponsored by a national physicians’ group that promotes veganism – that featured the ‘grim reaper’ to suggest eating cheese can be unhealthy. But the state-supervised milk board sometimes overstates dairy’s health benefits, public records and interviews suggest. An investigation by the Wisconsin Center for Investigative Journalism and a University of Wisconsin-Madison journalism class found the milk board promotes chocolate milk as a sports recovery beverage for children and teenagers. Related studies have mostly focused on adult athletes.

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ANOTHER ROUND of results is out on effluent management on-farm. It’s another mixed bag for the industry. This time Waikato and Canterbury regions get the tick and Northland takes the dubious honour of worst offender. Northland Regional Council reports 30% of dairy farmers checked by council staff were ‘significantly non compliant’ on effluent disposal. This is unacceptable. The dairy industry’s defence has for years been that only a handful of farmers are failing to adhere to effluent management rules. This small group is harming the reputation of the majority of environment-friendly farmers. But this argument does not hold water in Northland. According to the council the offenders are “some very wellknown, significant people in our community who are dairy farming and who just purely and simply refuse to do anything about the problems on their farms”. Such comments will add fuel to the fire in the bellies of environmentalists. They already have Fonterra and farmers in their sights. Now the rugby fever is dying down and attention turning to the general election next month, the industry should get ready for scathing attacks. Some will ask if Fonterra’s leadership is acting decisively to bring its worst suppliers into line. Others will claim Fonterra is playing the PR game – setting up a sustainability team and publicly saying the right things while commercially exploiting the country’s clean-green image. But its implied message to farmers is quite different. It is failing to take a strong stand against serial polluters and making production growth its central focus no matter what the cost. Surely, figures from Northland back the protesters’ arguments. Not all farmers are polluters. Some drop the ball from time to time. But some are serial offenders and there’s no place for such in the industry. The Dairy Clean Streams Accord was a good start but a new strategy is now needed to weed out repeat offenders. Maybe it’s time for Fonterra to use the stick instead of the carrot.

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Dairy News // october 25, 2011

17

opinion

Will Fonterra farmers subsidise investors? NEIL PENNINGTON

I AGREE with the literal

concept of TAF (trading among farmers) and fixing the capital of Fonterra. In fact it appears existing farmers have already contributed about $390m extra capital either by not taking up their surrender rights or acquiring dry shares (annual report 2010). However, I do not agree with how TAF has morphed and in particular the value destruction of shareholders’ equity in Fonterra brought about by a restricted market. On June 1 2009, the day TAF was introduced, the each Fonterra shareholder lost on average $126,000 ($1.32bn collectively). This value loss is based on the difference between the midpoint of Fonterra’s ‘fair value’: $5.57 per share less the current restricted share price of $4.52. The valuation report actually estimates the midpoint of the share price being traded in a restricted market at $4.18 which is a total loss of $166,000 each or $1.74billion collectively. It also states that the 25% restricted market discount rate could be materially higher. Of course new shareholders will benefit with lower investment subsidised by the 10,500 existing shareholders. I understand the reason for the introduction of TAF was to mitigate Fonterra redemption risk. The promoters of TAF told us $600m in capital redemption had washed out. However, according to Fonterra’s cash flow statement for 2008, the actual net cash outflow for share surrenders appears to have been $327m. Therefore, by introducing TAF we have solved a $327m problem at a collective cost of $1.3bn-$1.8bn. To put this in perspective, would you as a farmer pay $97,000$132,000 to fix an effluent problem that can actually be fixed properly for $25,000? Interestingly, dry shares to date equating to $390m in extra capital have covered the worst possible previous year

of capital redemptions and we haven’t needed to trade shares with non farmers, or run expensive real-time markets or pay fees to third party volume providers. Problem solved? To dig deeper into redemption risk, I looked at the last six years annual reports to see the effect on capital redemption on a cash basis. During this period Fonterra received net positive cash flows of $1.4bn from shares. This includes the period covered when there was a run on capital. I understand about half of the share growth is required to expand production but what about the other $700m or so? Couldn’t this have been used to offset redemption risks in other years? Therefore I cannot get my head around what exactly is our redemption risk and why we introduced a solution to this risk that reduces existing shareholders’ value. The communications from Fonterra give us some insight into a situation where there may be substantial redemption risk, i.e. an overseas supplier setting up in New Zealand and taking Fonterra shareholders. What would be the ramifications of this? Surely the share price would reduce markedly as departing shareholders accepted any low-ball offer. The action Fonterra says will fix this problem is a share buy back. Hence, we still have redemption risk. Also, I suggest a sustained successful attack by a major competitor would not be solved by TAF, whereby 20% of our shares were traded with the public but would need a completely different strategy. Therefore, why can’t we just leave TAF where we are today but without the restricted market and all the issues associated with involving non farmers in our cooperative? In respect of the share price, the two main concerns I have with a restricted market-based share price are: The share value for 100% of farmers will now be controlled and determined in a restricted market trading just 20% of available shares by

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potentially non farmer interests (unit trust holders); and A fundamental theory of share price discovery is that all information is incorporated into the price of a share and as a large cooperative we seem to draw a lot of negative attention. For

instance, information in the public domain in the last year alone that could potentially drive share prices down include: • Potential regulation of milk prices. • Directors’ decision to cap milk price in the market. • Australian milk wars

resulting in massively discounted milk. • Negative commentary regarding dirty farming. • Varying exchange rates. As a final note on share price volatility, how do you think the share price would have

reacted to events such as the Sanlu debacle and drought? Also, isn’t our value already under great enough pressure at any given time from commodity risk, exchange rate volatility and extreme weather? Why are we adding market risk as well?

• Neil Pennington owns and runs a dairy farm in coastal Taranaki. Previously, he part owned M-co, a developer and operator of trading markets facilitating trades in energy,carbon and equity. He holds a master’s degree in business.


18

Dairy News // october 25, 2011

agribusiness

Don’t dither when it’s time to move I HAVE recently been involved in assignments where clients have been grappling with decisions on asset values as they embark on the next step in their business strategy. With the average age of farm owners about 60, many are looking for options for moving on towards new horizons such as retirement or downsizing to eliminate excess debt. Some situations have resulted from ownership structures complicated by involvement of multiple generations of owners, including family enterprises approaching the end of their life cycle. Others are owner operators who wish to adopt a realistic view about their debt levels. Each involves the challenge how to capture and protect hard earned wealth. These scenarios each involve the challenge of establishing acceptable value -- in particular, realistic assessment of the value of land. Memories of historical capital gains remain fresh in many farmers’ minds and with relatively buoyant product prices currently available there is understandable temptation to persevere in anticipation of another upswing in asset values. There are two important points to consider when addressing these situations. The first is realism about the likelihood of gains in land values. While no doubt potential for fluctuations remains, a relatively dysfunctional international and

national capital assets is now market makes driven by what prospects for aswill deliver susset growth retainable cash remote. The global turns for buyers financial crisis rather than seehas confirmed ing them capitalthe importance ise future profits of businesses be- the ryan report into rising land kerry ryan ing appropriately values as was the geared through case in the past. realistically priced assets and This, combined with more debt levels that will deliver prudent lending policies by positive cash returns. The bankers, will inevitably reability to pay down debt over duce the potential for capital an acceptable timeframe is gains for farming land. critical to this. The second factor is perThere is no question the haps more important. Deci-

Farmers looking to retire face tough choices.

traditional approach to debt servicing through regular principal and interest payments was overlooked in the boom times that lead to the global financial crisis. A relatively high proportion of New Zealand businesses still have their debt structured on interest-only servicing. Those who continue to rely on this type of debt structure will sooner or later need to confront the reality of making meaningful debt repayments. The market for farming

sions confronting many who wish to exit farming are as much about securing their preferred retirement lifestyle as they are about reinvestment in its own right. A key determinant of what represents acceptable asset values in these situations is whether prices received will allow the vendors to meet their needs for the next phase. It is vital these are quantified so evaluation of scenarios is based on concrete facts and figures that enable prudent decisions

to be made. I find some people facing these types of decisions are inclined to dither if they have no clear vision of the next phase. There is nothing like securing a contract to buy residential lifestyle property, or secure passive investments, to motivate previously uncertain owners to become committed sellers. Decisions about asset values can be heavily influenced by the age and stage of the owners. The old adage that successful investment is less about timing and more about time in the market tends to be less relevant when retirement beckons. Commitment to proceed is often best driven by recognising the time to act is right for the business owner’s personal circumstances rather than being too hung up about getting the timing right in the market. It is important business owners are realistic how many good summers remain for them to enjoy the fruits of their hard earned wealth. It concerns me to see some who risk hanging on too long and limiting their opportunity to enjoy their sunset years. This presents a number of dilemmas and requires sound advice and credible economic thinking to add real motivation, confidence and value. • Kerry Ryan is a Tauranga based agribusiness consultant available to farming businesses face-to-face or online for advice and ideas. You can contact him at www. kerryryan.co.nz

in brief Working for a green coast

AGRECOVERY RURAL Recycling and Westland Milk are working together on sustainable rural recycling. Westland Milk environmental manager Chris Pullen says the co-op wants the West Coast dairy industry to be seen contributing to environmental sustainability. “With Agrecovery’s help we can promote best practice and protect New Zealand’s reputation for sustainable agribusiness practice.” And it involves Westland Milk’s factory, as well as the milk suppliers. The factory plans to correctly store, handle and and dispose of waste products. The co-op aims to maintain ISO 14001 certification at the Hokitika site, promote sustainable practices to Westland staff and farmer suppliers, and meet the environmental expectations of overseas customers. “The dairy industry is under constant surveillance from a variety of sectors with vested interests in the environmental impact of intensive farming,” says Pullen. “Part of these standards relate to suitable disposal of plastic and other waste products. “The requirements of Westland Milk Products and the remoteness of the West Coast challenge the provision of recovery and recycling services, so we chose to work with Agrecovery [for its tailor-made scheme].”

More technical support BALLANCE AGRI-NUTRIENTS is using more technical specialists to support its field representatives in offering farmspecific nutrient advice. Science extension manager Aaron Stafford says more farmers are asking for accurate, timely and specific technical advice and practical solutions on nutrient. Two technical officers have joined Ballance, taking the team total to five. “Farmers have increasing environmental responsibility and drivers on their farm systems,” Stafford says. ‘They need to know how to boost productivity and profit, especially [because of] external pressures that perhaps did not exist five or 10 years ago.”

Bio farming conference

SCIENTISTS AND farmers will this week discuss ‘biological’ farming at a conference organised by the Rotorua Lakes and Land Trust. ‘Towards Sustainable Farming – by farmers, for farmers’ will involve scientists from crown research institutes and universities, and farmers from different regions, this Thursday and Friday, meeting at Rydges Rotorua. Massey University scientists will present results from a study comparing nitrate leaching from organic and conventionally farmed dairy units. Scientists from Sustainable Land Use Research Initiative (SLURI) will present papers on ecosystem services, recent research on soil carbon, and soil biology focussing on earthworm diversity and abundance.

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Dairy News // october 25, 2011

19

agribusiness

Pond design hits the right note standards for the

design and construction of new effluent storage ponds have been released. The Institution of Professional Engineers New Zealand (IPENZ) ‘Practice Note 21: Farm Dairy Effluent Pond Design and Construction’ is now in use. It set out greater guidance for effluent storage. DairyNZ project manager for effluent Theresa Wilson says it should address concerns expressed by IPENZ members, effluent systems’ specialists and farmers about the environmental risks of poorly designed and constructed ponds. “Farmers using services from suppliers who follow the pond construction practice note should have more confidence in the design, engineering and construction advice and expertise they receive. They’ll make better investment decisions and better storage ponds will be built as a result.” DairyNZ paid for the writing of ‘Practice Note’. It was written by a team led by engineer Rex Corlett, of Opus International Consultants, and an IPENZ member. ‘Practice Note’ is a technical engineering document for engineers and pond design and construction companies, says Corlett. “There was a robust consultation with the wider effluent industry in its development. It covers

the legislation and regulations that apply in this area, the site investigation process, and design, construction and certification and commissioning phases of constructing effluent ponds.” Federated Farmers Dairy section vicechairperson Robin Barkla says ‘Practice Note’ will be welcomed by farmers needing definitive advice on how ponds should be designed and built. “An effluent pond is a considerable investment – you can pay six figures for one – but it has a great return on investment if built well. If you can store your nutrients from the effluent in the pond and apply them where you would normally use fertiliser, you’ll make good savings on your fertiliser bill which can pay off a pond in about five or so years. “’Practice Note’ is good for farmers as they will also have confidence in ponds built to these standards at compliance time.” Wilson says a new effluent pond is often a project farmers manage themselves in the dayto-day running of their farm. “It’s an involved process: sorting engineers, designers, contractors, finance and training staff in how it should be managed once commissioned. DairyNZ has written ‘A farmer’s guide to building a new effluent

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pond’. It complements ‘Practice Note’ to help farmers through that management process.” Effluent pond design and construction events for farmers will take place across the country from November 14.


20

Dairy News // october 25, 2011

management

Kiwi scholar’s study eyes milk shed efficiency PETER BURKE

A YOUNG New Zealand researcher working in Ireland on a project to improve milking efficiency in dairy sheds expects his work to benefit New Zealand and Irish farmers. Paul Edwards (24), of DairyNZ, is in Ireland for a year having won a Walsh Fellowship to study at Teagasc Moorepark, the Irish Dairy

Research Centre near Fermoy, County Cork. Moorepark Campus, as it’s known, is in a highly productive dairying area in south-east Ireland. A few miles from the campus is the village of Ballyhooly, home of Mike Ross, the Irish tight-head prop who played for Ireland in the Rugby World Cup tournament. His father Frank, a dairy farmer there, visited New Zealand to watch his son

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was landmark research – no one had done it before and the idea was to set a benchmark for

“No one had benchmarked what was happening in the industry. Without knowing what is happening we don’t know what to improve.” Edwards joined DairyNZ in 2009 as a science intern which enabled him to determine his own pathway as a researcher. In 2010 he started working with Jenny Jago on milking efficiency and is now working towards a PhD on this subject through Massey University. He had started doing a masters degree on this subject, but is in the process of upgrading it to a PhD. While at DairyNZ in Hamilton, Edwards worked on a benchmarking exercise on rotary shed efficiency using data from 80 farms. It

future research on how to improve efficiency in the milking shed, or as they call it in Ireland, in the ‘dairy’. “No one had benchmarked what was happening in the industry. Without knowing what is happening we don’t know what to improve. Additionally, we conducted an eight week experiment this year in New Zealand, aimed at reducing cow milking duration,” he says. The research also looks at ways of stimulating milk flow from the cow before milking and the effects of leaving the cups on the teats of the

cow after she’s finished giving milk. For example, will it harm the cow in any way. He notes that in New Zealand farmers just put the cups on the teats, whereas in Ireland and in other parts of the world, there is artificial stimulation of the udder to improve milk flow. Not that he suggests New Zealand will follow suit. Edwards arrived at Moorepark in mid August and within days of his arrival he was busy trying to replicate this same experiment at what will be the end of the dairy season in Ireland. “Essentially it’s repeating the rotary benchmarking trial. Whether it’s an exact repeat on what we did in New Zealand depends, as there may be a few changes which are [discoveries] from the New Zealand trial,” he says. One of the main challenges is finding sufficient farms with rotary sheds and milk meters. In Ireland, the average herd size is 50-60 cows

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so finding large scale farmers by Irish standards is not easy. The Irish company DairyMaster (and now DeLaval, GEA and Fullwood) is helping Edwards find these. One of the outcomes of his experiment is to find the threshold at which a rotary shed becomes more efficient than the standard herringbone design. In 2015, the EU will lift the cap placed on all its dairy farmers and Ireland is gearing up to increase milk production. Some have already done so and for their trouble are being penalised or just reverting to once-a-day milking which enables them to have more cows, but limits production. Come 2015 it’ll be all go. This is one of the reasons why Edwards

work will be so valuable. “That’s why milking efficiency is so important. The time in the shed can account for 57% of the labour on farms and here, with the expected expansion of farms, herds are going to increase. “Milking is going to get longer so trying to reduce that is going to be important,” he says. “With larger sheds I suspect the strategy to minimise cow milking duration will mean you can achieve the same performance in a smaller shed. If you reduce the cow milking duration, you should be able to work out the most suitable shed size. For example, once the shed is larger than a 60-bail rotary, an extra person is needed,” he says. To page 21

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Paul Edwards

A typical Irish dairy shed.

parents have significant interests in dairy farms. He completed a double major in agricultural science and animal science at Massey University. He’s now in the second year of his PhD on milking efficiency. He won the Walsh Fellowship to Teagasc Moorepark ahead of competitors from around the world. It just happened that the work he was doing was what Teagasc was looking for. Edwards has already travelled to most continents but admits he knew little about Irish agriculture. Researchers at Teagasc are once again seen as saviours of their country’s economy – the people who will through science lead the recovery from economic gloom.

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Dairy News // october 25, 2011

21

management

Skills and technology pair up THE DAIRY Womens

Network is joining forces with dairy automation company MilkHub. Network chief executive Sarah Speight (pictured) says the agreement marks a growing recognition of the value of the Network in transferring ideas, technology and training into the greater dairy industry. “We are excited about our new partnership with MilkHub. The company is exciting and

innovative, which aligns well with our Network’s values. We look forward to a long and mutually beneficial partnership,” says Speight. MilkHub managing director Ross Nilson says information on dairy farms is collated and recorded by savvy wives, partners and staff integral to daily farm management. “We decided the Dairy Women’s Network would be a good fit for

us as their values of innovation, inclusiveness, credibility, commitment and integrity align with our own.” MilkHub markets dairy automation systems alongside ‘cloud’ based herd management software that provides real time updates on herd and farm data. With daily analysis of milk flows and herd activity, the technology provides farmers with instantaneous updates,

allowing herd testing to be done every day, or any day required. Having the data held on remote servers eliminates the need for on farm software and the usual updates, and makes access to the data as simple as logging onto the internet with a

password. MilkHub’s online management tools can also lessen the frustrations identified with access to records, repeated data entry and security of data – tasks women often pick up. The company has invested in software

to put data online. Says Nilson, “Everything we do is online, including training, communications and management. Dairy Womens Network is a forum we’re familiar with and would like contribute to in the best practice realm.”

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The research being carried out by Edwards will ultimately lead to the production of a tool farmers can use to improve the milk efficiency of their herd and to make some capital savings. He envisages developing a simple computer model which would sit on a website.

“It would be like an Excel calculator There would be, say, six input boxes where the farmer can enter details such as the size of their herd, the size of the shed and what strategies they’re going to use. It would then give them a range of graphs and expected output or alternatives on dairy

shed based on whether they’re looking at expanding,” he says. It would also take into account capital costs. The project will benefit farmers in both countries. While the Irish dairy industry is small by comparison to New Zealand, it plays an important role in earning export dollars.

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Dairy News // october 25, 2011

management

Seven women have been killed in ATV accidents on farms since 2004.

Dairy days to bring ATV toll down A TRAGIC downside of more women in dairying is a greater number suffering ATV accidents. Dairy Women’s Network

plans to do something about it. ATV crashes are the biggest cause of farm injuries and deaths in

New Zealand. Last year was a black one for farming women: two killed on ATVs, one aged 62 at Kaikohe, the other a

young farm worker near Westport. Seven women killed in eight years. The annual average is five farmers (both sexes) killed and 850 injured. This costs ACC about $7 million a year, not to mention the loss, debilitation and pain caused to family and community. The Dairy Women’s Network is working with the Department of Labour (DoL) to increase the level of ATV skills dairying women have, and in November is using its popular Dairy Days as a way to get the message out about safer riding. “More women than ever are involved in the dairy industry, often as heavily as their male counterparts and the impact death and injury has on rural families and businesses is simply too great to ignore,” says Dairy Womens Network chief executive Sarah Speight.

nity to ask questions on all aspects of safety, and are set in “farm friendly” times between 10am to 2pm. The DoL is one year into a scheme to reduce the level of accidents on ATVs, and the campaign comes with four key messages that will be reinforced at the Dairy Days. They are to always wear a helmet, keep children off ATVs, train staff correctly and use the right machine for the job. The department is aiming to reduce accidents by 30% by 2013. DoL’s head of harm reduction Francois Barton says working with the Dairy Women’s Network reflected the valuable role women can play in improving safety on their own farms. “We know they are often the influencers on the farm and we believe they can help reduce death and injury by the way they ride ATVs,”

ATV crashes are the biggest cause of farm injuries and deaths in New Zealand Women attending the Dairy Days – held nationally from November 8-30 – will leave with more knowledge on the key principles of ATV operation, and information to pass on to staff back at the farm about ATV regulations. Ag ITO advisor Graeme Couper is one of the 10 instructors who will be attending the Dairy Days, providing hands-on tips to improve riding skills. He believes women are often more open to improving their skills, and play a vital role in passing those skills on to other staff. “Often they may not be riding as frequently, and when they do they may be in challenging situations, like towing calf milk which can challenge your skills and the ATV’s ability. We also hope to highlight things less obvious, like the need for good, ongoing maintenance to keep ATVs safe.” The Dairy Days provide plenty of opportu-

he says. The department intends to have some of the inspectors from its team present at the Dairy Days, providing information on the safety campaign. Dairy Days participants will learn more about the seasonal farm visits DoL inspectors will be making around the country, ensuring farm safety is being taken seriously. Inspectors will be explaining the outcomes of these visits, which can include a range of enforcement options from written warnings, improvement notices and prosecution. The Dairy Day sessions also aim to inform farming women who may employ staff about their obligations to ensure all safety measures are taken. After an ATV accident killed a Masterton worker in 2008, the employer was fined $78,000 and required to pay $60,000 in reparation to the worker’s family.


Dairy News // october 25, 2011

25

management

Feed pad a sound investment NEW ZEALAND dairy farm systems

A range of supplements can be fed on a feed pad.

crop or feeding silage or hay in a paddock. Many farmers are using automatic gate latches so cows can come to the feed pad themselves prior to milking. Reduce the environmental impact of dairying. Animals that eat supplements on a feed-pad deposit a lot of urine and manure on concrete rather than on the paddocks. That’s a good thing because when cows urinate on pasture, the nitrogen deposit may be in excess of 1000kg/ha resulting in significant leaching of nitrates.

Effluent from feed pads can be evenly applied to pastures or crops at a time when leaching losses are minimised, reducing the need for solid fertiliser. By reducing pugging, feedpads that double as a stand-off area decrease nitrous oxide emissions per hectare. Nitrous oxide (N2O) is a potent greenhouse gas with 310 times the global warming potential of carbon dioxide. In summary, a feed pad should not be considered as a significant cost but rather an investment which in most cases will deliver financial and en-

vironmental benefits for many years. Your local Pioneer Forage Specialist can use our new Feed Pad Check calculator to help you determine the potential return from building a feed pad this summer. They can also provide you with information on factors to consider when building a feed pad. To request a free Forage Specialist visit call 0800 PIONEER (0800 74 66 33) or visit www.pioneer. co.nz and click on myFarmCheck. • Ian Williams is a Pioneer forage specialist. Contact him iwilliams@ genetic.co.nz

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summers has caused as many, if not have changed significantly in the past more issues than pugging in winter. decade. Stocking rate, per cow pro- Reduce supplement feed-out duction and grazing pressure have losses. increased. Farmers are using more There is a high wastage associsupplementary feed and there is in- ated with feeding supplements in the creasing focus on the environmental paddock especially when the ground impact of dairying. is wet. Wastage increases the cost per In this new farming environment kgDM eaten. The greater the wastthere are significant financial and en- age, the greater the cost of the feed vironmental benefits in having a feed and the more milk you need to propad that doubles as a stand-off area. duce to pay for it. Feed pads help farmers Feed a range of supto: plements and control Maximise pasture supplement cost. harvest. Home-grown or Maximising pasbought-in forages (e.g. ture harvest is a key to maize silage or pasture dairy farm profitability. silage), concentrates Standing cows off pas(e.g. grains or PKE) or ture and feeding them local by-products (e.g. maize supplements can help bread, brewer’s grains ian williams decrease pugging and or kiwifruit) can all be over-grazing. fed on a feed-pad. Research has shown pugging (esYou can feed a mix of supplepecially in winter and early spring) ments, at a rate you choose, any time can cause short-term decreases in during the milking season or dry pepasture yield of up to 80%. For a riod. One of the downsides of relying Waikato farm, moderate pugging of solely on a meal feeding system is 50% of the farm and severe pugging that you are locked into a feed whose of 10% of the farm was predicted to components are imported and sold decrease milk production by 16%. at a price you have no control over. A 3-year study showed paddocks In-shed feeding systems also make with no pugging produced 28% it difficult to feed anything when the greater pasture yields in the July- herd is dry. September period than conventional Minimise workload. year-round grazing systems. A large amount of supplementary Overgrazing pastures reduces feed can be fed out relatively quickly leaf area, slowing growth rates and on a well-designed feed pad. Feeding decreasing pasture persistence. In supplements on a feed pad often rerecent years overgrazing during dry quires less work than break feeding a

At MINDA everything we do is about helping you to maximise your productivity and profitability and we’ve been at the heart of profitable dairying for more than 50 years. MINDA is a whole-farm information and management solution that puts you in total control of every aspect of your farm’s operation. From which animals are the most productive to feed planning; from calving to herd testing; from EID to health treatments; MINDA pulls it all together with easy to use reports and a range of management tools to give you the control you need.

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26

Dairy News // october 25, 2011

animal health Rumen modifier helps beat big dry TE AWAMUTU farmer Brian Chick, like many Waikato farmers in recent years, has had to adapt to putting more inputs into his previously all-grass system, after some tough seasons have challenged most farmer’s ability to grow sufficient grass for high performing cows. Recently, reports Elanco New Zealand, Chick, keen to lift his already-respectable production (142,000kgMS from 430 cows) in 201011, began using Rumensin to help maximise the energy value for milk production from his pasture. Chick and his wife Jo have this season calved 490 cows on his 130ha. They milk in a 50-bail rotary built in 2003. The area has for five seasons been blighted by tough, dry summers and incon-

sistent spring growth. But Chick has stuck to a few simple principles to try and make the most out of grass growth when it happens. “We have always aimed to try and protect the farm as much as we can, and we will always try and get at least a third of the cows off for six weeks over winter,” says Chick. Having conveniently placed winter grazing near the boundary makes a big difference to the economics of wintering off, avoiding transport costs. It includes taking advantage of a maize block that often has short-rotation Italian rye grass over winter. Chick also tries to dry off with a target cover of 2400kgDM/ha, “pretty much where we want to be at calving time”. He kicks off spring applying

nitrogen from early on in the calving stage behind cows to maximise early spring growth in the first round. Keen to push things along, he raised cow numbers to 490 for 201011, and took the advice of his long-time vet Neil McPherson, that he begin using Rumensin. “I have known Neil a long time and trust him implicitly. I knew he would not suggest something that was not going to work, so we decided to go for it. The payout looked promising and we wanted to see if we could use Rumensin to convert feed more efficiently.” They used it from the start of calving, drenching in the shed. Of all the seasons to try the product, 2010-11 turned out a big challenge. Waikato got four weeks of consistent rain

through September, then went dry for a long period that threatened to undo the second half of lactation. “At one stage just after mean calving we were 30% ahead of the year before, then the wet weather arrived and we went from one extreme to the other. By the time the rain came in mid-December we were just equal to the year before.” But despite that spring being a “bugger” Chick says the cows looked good, kept weight on, continued to milk well and had a 6.4% empty rate, against a Te Awamutu regional average of 11%. “The cows looked full all season.” He ultimately had to cull 60 cows as the dry bit prior to Christmas, with the last mob going the day the season saving rains arrived. But

Brian Chick

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production ended up 22% ahead of the year before, and with the extra cows gone the stocking rate was similar to previous years for the rest of the season. He noticed the cows maintained their body condition through

summer, and believes using Rumensin helped pull back much of the lost production prior to Christmas simply through better conversion of feed to milk, without sacrificing body condition. “Every kg you can keep on through summer

is a kg you don’t have to put on in winter.” Chick concedes it can be hard to quantify the benefit of Rumensin, but would be loath to drop it from his budget. “The cows look good, they milk well, keep condition on and were fertile.”

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28

Dairy News // october 25, 2011

animal health

Disease free status looms THE AUSTRALIAN dairy industry will next year be declared free of cattle viral disease enzootic bovine leucosis (EBL). This follows a 15 year campaign. However, Australian dairy farmers are being urged to maintain farm biosecurity as Australia prepares to claim freedom from the disease. It urges effective on-farm biosecurity to protect dairy herds from the introduction of infectious diseases and to validate the EBL

disease-free claim. Dairy Australia’s manager risk analysis, Robin Condron, refers to a 10-page publication (‘Dairy Biosecurity: Healthy Farms’) being mailed to farmers, together with animal welfare guides, help reduce the risks to farm business. The guide is also available on the Dairy Australia website www. dairyaustralia.com.au Condron says biosecurity arrangements for EBL are important

following the eradication of the disease from the Australian dairy herd. “Not all beef herds are free of EBL, so before introducing beef cattle onto their properties dairy farmers should test each individual animal. “Alternatively, they should only source beef animals from herds that have tested negative for EBL.” The booklet covers stock movement, contact with wildlife and vermin, fencing, waste treatment and

Watch your herd MINIMISING THE occurrence and spread of animal diseases is achieved by having a preventive herd health scheme and watching animals closely to ensure early detection of illness and prompt treatment, says Dairy Australia. The aim is to manage livestock in a way that prevents the occurrence of disease and limits spread if animals do become ill. Key elements are:

• Vaccinating to prevent diseases that occur in a region. • Careful observation at milking. • Comprehensive mastitis prevention treatments. • Working with neighbours to minimise spread of diseases and weeds from adjoining properties. • Reporting unusual outbreaks of disease to a vet. • Having a plan for prompt disposal of dead stock.

dealing with dead stock. “It helps explain biosecurity and the role it plays in protecting your farm and the whole Australian dairy industry from the introduction of exotic diseases such as foot and mouth disease,” says Condron. “On-farm security assesses and manages risks from animal diseases, pests and weeds. It should form part of normal farm business risk management.”

The Australian dairy industry will be declared free of viral disease EBL next year.


Dairy News // october 25, 2011

29

animal health

Healthy udder does the job IT WAS a costly, yet simple, mistake that led to Te Awamutu farm manager Don Hunt implementing a system based on Healthy Udder, a new tool introduced by DairyNZ to improve milking procedures. Running 270 cows (at peak) through a high input feed system on a 65ha (eff.) farm with two full and two part-time staff brings its own challenges. Because of the size of our farm we need to run a second mob that includes the colostrums and dirty cows, says Hunt. “Our mistake came when part-time staff did not recognise markings on the stock. We got an inhibitory substance grade and because of that had an audit.” The audit introduced him to Healthy Udder. A split-second decision by a part-time staff member that allowed dirty milk in the vat, Hunt says. “It cost us dearly; that’s something we don’t want to have happen again. Because we have part-time staff coming and going, putting a system in place to mark and identify the animals that was understood by everyone was the obvious solution. Healthy Udder gave us the system we could, with the help of our vet, customise for our own situation.” Local Te Awamutu vet

Jess Shelgren has been involved with Healthy Udder training with DairyNZ since its inception. “When she came to do the audit she talked to us about giving this a go,” says Hunt. “We later met at her office and used Healthy Udder to come up with a system that would work in our situation. We took that system back to the farm and trained all our staff to use it. “Since then we have had no problems. Everyone is aware now of how cows are marked and what to be looking for, that includes our part-time staff. Healthy

Udder gives you good guidelines to follow, ones the whole industry could use. Best of all they are clear and straightforward – easy enough for a 16 or 60-year-old to pick up.

“And having the laminated sheets available, posted right where the milking is done, keeps our system front of mind,” says Hunt. “This whole pro-

cess has shown me how lucky we are as an industry to have access to such high levels of expertise through such as DairyNZ, QCONZ and local vets.”

A healthy solution SmartSAMM Healthy Udder helps dairy farmers prevent, find and treat mastitis. It explains the importance of good udder health for cows, the farm team and the whole business. A one page ‘prevent-find-treat’ matrix provides a navigation aid for Healthy Udder as well as a reminder of the SmartSAMM recommended

good practices that need to be applied at each stage of lactation, from springers to dry cows. Healthy Udder has been built for the dairy; printed on waterproof card and featuring a swing-ring so it can be hung handy to the action. www.dairynz.co.nz • Articles sourced from DairyNZ Inside Dairy October issue

Firestone EPDM Geomembrane – sustainable, future proof and environmentally friendly storage solutions. • Widths available from 3m up to 15m, therefore fewer joins.

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30

Dairy News // october 25, 2011

animal health

Blood parasites hit Victorian cows CATTLEMEN in

north-east Victoria and Gippsland are seeing increased cases of theileriosis (T. buffeli). Victorian Department of Primary Industries (DPI) district veterinary officer Lee Manning says while theileria was com-

mon in northern NSW and Queensland, and that cattle had developed immunity and didn’t show any illness, it had been rarely seen in Victoria. “Theileria is a blood parasite which typically infects cattle through a tick bite,” says Manning.

Victorian beef and dairy herds have been infected when cattle from the northern states, carrying ticks infested with theileria, are introduced into a herd or on to adjoining properties. The parasite can cause illness and even death to cattle

not previously exposed to theileria. Theileria is transmitted by blood-sucking ticks, including the common bush tick, which is widespread in Victoria. It can be carried by all mammals, including wildlife, dogs and cats,

as well as birds, says Manning. Other instances where blood may be transmitted between cattle – including blood sucking insects, needles, ear notching and castration – could also transmit theileria. Manning says there is

no specific treatment for theileriosis; only symptomatic treatment could be provided, including good nursing, but cattle with severe anaemia may not recover. “The disease causes mild to severe anaemia due to destruction of red blood cells and this can be seen as lethargy, weakness, pale mucous membranes, a drop in milk production, going off feed, difficulty breathing, abortions, jaundice and sudden death,” she said. “Cattle are more likely to show signs when stressed, especially at the point of calving but most infected cattle will have benign theileriosis and

show no signs of illness. Bush ticks are almost impossible to eradicate from a property because they are on and off the host in a week and live in pasture for many months, as well as surviving on wildlife. “This parasite is not T. parva, which is an exotic parasite causing East Coast Fever in Africa.” It is endemic in northern Australia, although rarely diagnosed in Victoria. He urges farmers to contact their local vet for advice if cattle are showing multiple abortions, signs of anaemia or any other unusual signs. The disease can be confirmed by laboratory testing.

Dairy farms in Victoria are seeing increased cases of a blood parasite.

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31

Farm Dairies & Equipment

Happy with robots SWITCHING TO an automatic milking system (AMS) hasn’t been all plain sailing for Waikato farmer John Fisher. Apart from getting used to technology, Fisher faced the task of motivating his cows to come to shed for milking. During the first few weeks he had to come to the farm at 11pm and chase cows into the shed for milking. This improved in time. Training heifers for robotic milking is also a challenge and time consuming. Fisher, the first Waikato farmer to use robotic milking, believes there is still a lot to learn. Automation is still in its early days in New Zealand, he

says. However, despite a tough start, DeLaval machines 24/7 on his he has no qualms about making the farm milking 327 cows. switch, being keen on automation. Fisher has set up his farms When it was time to re-fence his in three equal blocks, “like 80ha rectangular farm in Cambridge, three different farms,” he says. he went to DairyNZ’s “This means the Jenny Jago, who was leadcows are motivated ing its greenfield project to come to the shed on robotic milking. Fisher to then move on to a was ‘hooked’ and in 2006 new paddock at nine he went to Australia to hour intervals.” Dual study a robotic milking races allow direction operation. of cows to different After “waiting for paddocks. John Fisher the right time”, Fisher in Currently about March this year moved 80% of the cows do this into robotic milking, running four on their own; the others need to be

AMS operates in 20 countries NEW ZEALAND dairying has been slow to take up automation, says DairyNZ’s Jenny Jago. De Laval AMS was introduced here in 2008 and only five farms have installed the technology. Jago says about 10,000 farms operate the AMS, in 20 countries, mostly Europe. Denmark leads with

30% of its cows on robotic milking. In the EU, 40% of new milking is done by robots. A majority of EU farms using robotic milking are smaller farmers with cows housed, fed concentrates, milked three times a day and having long lactations. Jago says there is now a move to

using AMS on pasture based grazing systems in Australia, Ireland and New Zealand. “The question for New Zealand farmers is how they should use this technology. “It’s so different from countries for which this technology was originally developed.”

Cows waiting to be milked by robots.

The Fisher farm brought from the paddock. Cows are able to be sorted and drafted as they enter the yard: colostrum cows to one particular robotic milker diverting milk and mastitis cows to a holding pen to be treated. The cows are fed 1kgDM/day in the dairy. Switching to automation has lowered labour costs. Fisher has one worker compared to two before AMS was introduced. And AMS has also resulted in “more happy cows… in the best condition they have ever been.” Fisher has spent $1.5m million on the AMS with each robotic milker

• 80 ha flat rectangular farm, four robotic milking systems operating 24/7 milking 327 cows. • One of only five De Laval Automated Milking Systems in New Zealand. Only seasonal farm, others are split calving. • Began using AMS in March 2011. This is the first calving season in the new system. • $1.5 million set-up cost.

costing $250,000. He expects the machines to last 15 years although computer software upgrades may be needed every three years.

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32

Dairy News // october 25, 2011

farm dairies & equipment

Automation is here FARM AUTOMATION

systems such as Protrack are a common sight in dairy sheds, and less a luxury item, says LIC. Inquiries – and orders – are increasing as farmers seek to better draft and maintain Minda records. LIC farm automation manager Garth Anderson says automation is a more accepted management tool on-farm. “Protrack is the most intelligent drafting system on the market but its integration with Minda [is what makes it] the most powerful tool. “With direct links to Minda, it allows farmers to utilise their herd records in the shed to automate common milking tasks, and they can also update and maintain the records easily by adding details and recording events as they happen. They can record once and it’s done, all at the touch of a button.”

Almost 1000 farms of all sizes are using Protrack. One user is Wayne Bishop, Paeroa, who recently installed a system after seeing it working at a neighbour’s place. He bought Protrack Vector units ear-

could be quite testing; this will make it easy.” Manawatu dairy farmer Jared Whittfield installed a Protrack Vector in his 40-aside herringbone in 2006, and learned there was a lot more to it than drafting.

After each Protrack installation, farmers quickly identify the best features for their business lier this year for his two farms north of Paeroa. His son Darcy, managing one of the farms, says it’s “like having another lady in the shed” with the system providing automatic three-way drafting at the end of his 36-aside herringbone. “I’d heard about it, and I was always sort-of sceptical but then I saw it in action up the road I decided it’d be great. We used to draft manually, which was a pain and

He uses the system to maintain his Minda animal health records with a touch screen in the shed, meaning no need to take home the whiteboard home at night. “Drafting was always an issue; being able to record animal health information directly into Minda from the shed makes it even more valuable. The most important thing is keeping good animal health records. We even record when

someone treats a lame cow, even if they don’t get penicillin. “I wasn’t really so detail orientated before but once you’ve got it right in front of you, you realise how valuable it is. Any farm worker can understand it and record the information, and it’s uniform information – not 10 different guys writing on 10 different pieces of paper. To me that’s hugely valuable.” After each Protrack installation, farmers quickly identify the best features for their business, Anderson says, and LIC works to ensure all customers are getting the best return on their investment and utilising their system to full potential. “We’re constantly getting feedback from customers, confirming the benefits of their system which validates the money they’ve invested.”

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Wayne Bishop and son Darcy use Protrack on their Paeroa farm.

Getting better herd test results HERD TESTING has ceased to be a chore because of LIC’s newest farm information product Minda Milk, now available on Minda Home, the company says. Minda Milk is free to all LIC herd testing customers, providing them electronically with their results, and with all the analysis done. Farm systems general manager Rob Ford says Minda Milk is the best thing to happen to herd testing in a long time. “Minda Milk takes herd testing into a new era, making it easier for farmers to read, understand

and utilise their results to make more informed decisions. We know farmers will see its value, because they have been asking for it for many years.” Minda Milk contains all the key data from herd testing, at the touch of a button, including: • Best cows, worst cows and poor health cows. • Herd summaries and individual animal detail. • Multiple herds view. • Specific age group information. • Accumulated lactation. • Trends. • Key averages. • Somatic cell count compared to production

worth. Pre-built graphs, previous season’s results, and facility for sorting and viewing information as desired make Minda Milk indispensable, Ford says. “Pulling out copies of old reports from last season will be a thing of the past for Minda Milk customers. They can now see quickly and easily how their herd is doing in comparison to the same time last year.” The original herd test report will continue to be sent by post or email through a farm’s changeover to Minda Milk.

Picking top cows MINDA MILK, due for release soon, is a web-based system that will provide farmers with more enhanced information and data from their latest herd testing results. “Minda Milk will allow our customers to see, at a glance, which are their top performing cows and which they should consider culling, says farm systems general manager Rob Ford. “These are the sort of important decisions that can be costly for a farmer, whether they mistakenly cull a top performer or keep a low performer.”

Also, Minda Land & Feed, another web-based product on the horizon, will allow farmers to record information many have formerly kept in their heads. “Farming is much more than cows, and getting out and milking them morning and night. Many external and internal conditions can affect productivity every day and these need to be factored into every decision. “High-speed broadband is vital to the success of these products.”

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Dairy News // october 25, 2011

33

farm dairies & equipment

Turkey moving over to robotic milking DELAVAL HAS sold it

first voluntary milking system (VMS) in Turkey. The Farm Sarp is the first robotic milking farm in the country and aims to be Turkey’s most production efficient farm, says DeLaval. “This is a significant step as we enter the Turkish market with VMS. We are happy Farm Sarp chose us as their supplier,” says the company’s regional president India, Middle East and Africa, Andrew Turner. The Sarp farm, owned by Cuneyt Özgümüş,

began operations last year. It has 135 cows and capacity to milk another 350 cows. Özgümüş says he has partnered with DeLaval to create a dairy farm supplying high quality milk. “DeLaval offers a number of options for different needs. “Also, the udder cleaning technology of VMS is more effective than alternative robotic milking systems.” DeLaval sales company president for Middle East, North Africa,

Turkey and India, Adel Hazzan, says dairy is growing in importance to the region’s economy. “Turkey, like most of the world, is following the trend to con-

solidating small farms into larger production units. Indeed, we have witnessed an increased awareness and demand for high quality milk.” The VMS system

allows round-the-clock milking to optimise yield. It helps farm managers run more sustainable, professional and productive dairy operations.

Is teat damage causing you stress and costing you money? There is a preventative solution:

lower somatic cell counts less mastitis happier cows less stress Steve Booth (left) receives $2000 voucher from Skellerup dairy area manager Peter Lindsay (middle), and CRT retail manager Jason Michie.

Website visits bring prizes A VISIT by two farmers to Skellerup Industries’ new website has paid off. Steve Booth, Paretai, and Barry Knowles, Taranaki, each won $5000 packages. Skellerup’s new website (www.dairybestpractice. co.nz) contains specific usage information on key components of milking plant. To celebrate the launch of the website, Skellerup invited all New Zealand dairy farmers to visit and register to win one of two $5000 packages. Each comprised up to $3000 of agricultural or farm management consultancy fees or software packages related to animal health, dairy plant, pasture management or financial management and a $2000 Skellerup dairy product voucher redeemable from participating rural retailers. Booth has been dairying on the family’s 80ha farm all his life with the help of his partner Melissa and their two children, who have now left home. The couple milk 180 Holstein Friesians on a 16-aside herringbone shed. Booth’s prize choice includes a financial management package and Mindalink Farm Keeper. The Skellerup voucher will be redeemed at the CRT store in Balclutha. Knowles has been dairy farming 40 years, six years on his family farm in Midhurst and 34 years with his wife Susan on their 158ha property in the same district. They have three grown-up children: Megan, David and Claire. David has taken over as a sharemilker and now milks 350 Friesians through a 28-unit highline shed recently fitted with a cup removal system. Skellerup’s Reflex LT23 liners have been used to milk the herd for some time, but Barry and David have decided to upgrade and try the Skellerup Vacplus Square liner.

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34

Dairy News // october 25, 2011

farm dairies & equipment

AMS impacts farms New milking AN AUTOMATIC milking system

(AMS) has an impact on every aspect of farm operation – not just milking time, says Dairy Australia. In its management guide for pasture-based automatic milking systems it says the change from needing labour at set milking times to a distributed pattern over 24 hours is a huge change in routine for farmers. Only a small proportion of the 10,000 AMS installations worldwide have been unsuccessful to date, it says. “Failures are due mostly to unrealistic expectations of the technology and the impact it will have on farm labour, lifestyle and business. Cows move voluntarily around an AMS farm. The most effective motivator is feed. Allocating and allowing access to feed or loafing areas encourages cows to move around the system.” Careful layout/location of farm infrastructure assists good cow flow. Dairy Australia says it is important to understand the whole system relies on the cows’ willingness to move

around the farm. Many farmers new to AMS assume they will have lots of time on their hands. In reality, there is still plenty to do, but the focus shifts. Routines no longer pivot on milking time. The main focus is now on the allocation and management of pasture/feed as the driver for cow movement. The milking machine takes on a

whole new role as the information and control centre. Checking cow data on visitation rates, milk quality and yield, and setting milking parameters become part of a new daily routine. The herd as a whole is less of a daily focus as individual cow management becomes easier. Daily reports and alerts indicate which individual cows need follow-up.

technology in the pipeline DELAVAL AND Cornell University

are teaming up to deliver new technology to the dairy industry. The university’s Ivy League School will equip its new teaching dairy barn with DeLaval milking equipment and herd management. “Cornell University is committed to the advancement of dairy management, and we look forward to the enhanced teaching and outreach opportunities our new dairy barn will offer students, faculty, producers and the industry,” says the university. “Cornell is delighted to partner with DeLaval, an innovative, research-oriented company, in our new dairy facility.” The new teaching facility will be equipped with a DeLaval double-10 Cascade Parallel parlor, fitted with DeLaval MPC680 milk point con-

trollers and MM27 milk meters to measure milk yield and flow. Additionally, Cornell will utilise DeLaval activity monitors on their herd to relay data on cow activity for use in breeding and cow health monitoring. Cornell University plans to milk about 150 cows at its new facility, to be located on campus and available to College of Veterinary Medicine and College of Agriculture and Life Sciences students. The teaching dairy barn has been designed to LEED (leadership in energy and environmental design) standards and will be used to teach students, technicians and the public about concepts and practices in dairy health. Operations at the green site facility will begin next year.

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Dairy News // october 25, 2011

35

farm dairies & equipment

Robot milkers step up maker Lely has built its last Astronaut A3 milking robot. Now it’s promoting the Astronaut A4. The Astronaut A3 milking robot, launched in 2005, shook up the dairy industry, the company says. “The design ensured unrivalled reliability and efficiency, and offered substantial financial and lifestyle advantages to dairy farmers. Its successor – the Lely Astronaut Next A3 – took things one step further. Lely sold A3 and A3 Next robots to 4400 customers in 55 countries.” Many more countries embraced the robotic milking concept. Last November Lely the next generation – the Astronaut A4, even more flexible and costeffective. “In addition, this milking robot further improves animal wellbeing as well as

acceptance of automated milking. In a nutshell: more freedom, more control and more milk.” Recently, the last production slot for the Astronaut A3 milking robot was filled, which means the Astronaut A3 production ends next month. Lely chief executive, Alexander van der Lely says they are “very proud of the success of the A3 and grateful to dairy farmers who helped the company achieve this. [Now we are] at full speed producing and installing the Astronaut A4.” Lely says demand for its milking robots has increased markedly since Eurotier 2010. Many EU dairy managers are expanding, and favour milking robots to keep working hours under control when herds are enlarged. At Eurotier 2010 the increasing popularity of milking robots came to the attention of

Silver award for Lely THE LELY Astronaut milking robot received a silver certificate of merit at the recent Royal Association of British Dairy Farmers livestock show. The award is for the cow friendly walk through design called the I-flow concept. The I-flow concept allows cows to walk straight in and out of the milking robots’ cow box which eliminates any unnecessary obstacles. It makes continuous interaction with the rest of the herd possible thus eliminating unnecessary stress. Lely says it has explicitly refrained from automating the actions of milking itself; instead it has built a system around the cow to make sure that cows like to be milked within a low-threshold system. “This way of thinking increased the capacity of the Astronaut, allowing dairy farmers to maximise results,” it says.

politicians, who visited a local dairy farm to learn more. They heard that

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36

Dairy News // october 25, 2011

farm dairies & equipment

NAIT offers more scope for automation gains WHILE SOME farmers will see mandatory NAIT tagging as an unwelcome and expensive compliance issue, MilkHub managing director Ross Nilson says others are taking the opportunity to use the RFID technology to upgrade their shed operations with automation. “RFID tags are the essential starting point for automation. We understand the prospect of new technology being foisted onto farmers can be quite overwhelming for some, so farmers need to know they don’t have to spend their entire payouts installing all the whistles and bells to get some real on-farm benefit from NAIT compliance.” says Nilson. MilkHub’s dairy automation and herd management system is developed in modules, therefore it is possible to install a simple EID panel reader alongside an existing race to record individual cow movements and identify missing cows. When the reporting of cow movement off-farm or between properties becomes man-

datory in July 2012, the information will be readily and quickly available from the MilkHub online management platform. The addition of walk-over weigh scales to the EID reader builds on a database of vital cow information supporting better informed herd management and decision making. Individual cow weights are collected for feeding and health observations. The weights are delivered as online reports for analysing mob averages and weight trends. Pre-mating weight recording aids body condition scoring, and breeding outcomes can be improved with good weight management at AI time. Upgrading shed operations and functionality is often top-of-mind when considering automation and MilkHub’s 3-way automatic drafting gate offers operational and management benefits. Cows of interest can have drafts set using a keypad or pullcord from in-shed or set online at any time. The animals are automati-

cally drafted out for events or treatments as they leave the shed with no interruption to milking. Todd Williamson, Rahotu, operates a one-man shed with 540 cows going through his 44 bail rotary shed. “Using the automatic drafting gate with the pullcord is fantastic. It has made life so much easier. Last night I drafted our 100 cows which was no problem because the pullcord is right beside you and I just keep on milking,” he says. The MilkHub system is fully integrated and chosen modules can be installed at any time including cow in-bail information display, in-line sensors for milk yield and mastitis predictions, broadcast display screens and feed controller. These are advanced in-shed tools that produce key real-time information for every cow, every milking, every day. The comprehensive information delivered can drive productivity increases, reduce costs and support dairy farm compliance. Once RFID

A new drafting gate and EID panel reader on a Reperoa farm.

tagged cows are added to electronic database herd management, decisions are better supported. The combination of drafting gate, weigh scales and EID reader with online

management platform is a powerful entry level system, and the ability to make improvements to production and the bottom line are quickly evident.


Dairy News // october 25, 2011

37

farm dairies & equipment

Increase milk yield by changing liners MORE EFFICIENT milk

harvesting could increase our national milk yield by up to 5% per year, says rubberware maker Skellerup Industries. It could also save the average dairy farm thousands of dollars a year in energy, labour and animal health costs. Changing milking liners before they deteriorate is a key means of raising efficiency, yet many dairy farmers change liners only once a year – between seasons. Not a good idea, says Skellerup. “Modern dairy rubberware has come a long way over the past 70 years. But no piece of rubber lasts forever, especially one that works as hard as liners. The average liner expands and contracts at least two million times in its lifetime. After that it begins to break down.” Old liners can waste energy, cause grades and injure cows. They have a major impact on farm productivity. They are also one of the cheapest items things to replace. These contentions arise from research by Skellerup, and its conclusions are supported by Quality Consultants of NZ (QCONZ), the company says. Farmers who continue milking with over-used liners often don’t realise they’re missing out on

potentially large gains, says national manager Perry Davis. “The nature of milking liners means they are likely to have more impact on milking efficiency, hygiene and cow comfort than any other component of a milking machine. “They’re the one part of the machine that comes into constant physical contact with the cow. But because they’re mostly hidden inside the shell, it’s easy to assume they’re working properly even when they’re not.” By the time cups start falling off cows during milking – the first major sign that liners are worn out – the damage could already have been done, Davis says. “A good liner, wellfitted, will milk out a cow out quickly and efficiently. It doesn’t slip and it leaves the teats looking similar in size and colour to how they looked before milking. “A badly fitting overused liner is just the opposite. It could leave milk in the udder, slip off the teat and/or leave noticeable rings at the top of the teat. Permanent teat damage is not only possible but common. On top of that, any cracks in the rubber are likely to harbour bacteria.” Modern rubber compounds are more

Get the best from a liner • Make sure the liner tailpiece is the right size for the claw. • Check the claws for sharp edges. Sharp claws may cause impact damage on the short milk tube. Use emery paper to take off any sharp edges. • Always remove the liner from the jetters after cleaning, otherwise mouthpiece distortion may occur. (It also lets air circulate through the system.) • When fitting the liner in the shell, ensure the indicator markers are aligned so the liner isn’t twisted in the barrel. • Clean with approved chemicals as per manufacturers’ instructions and use water at the recommended temperature. • Cold water does not remove butterfat. • Release the liner tension in the shell at the end of the season if the liners have not reached their 2500 milkings limit. • Sun and ozone affect rubber, so protect liners as much as possible. • Replace liners after 2500 milkings.

sophisticated than in the past, but dairying has also changed in that time. Herds are larger, farms are more intensive, and

cows work harder than 70 years ago. So do the machinery and rubberware. www.dairybestpractice. co.nz


38

Dairy News // october 25, 2011

machinery & Products

Boom ‘leap forward’ in durability DURABILITY AND versatility

are foremost in Hustler Equipment’s new Spraysmart 6m and 8m wide Duraboom, designed and made in the company’s Hastings plant. Marketing manager Brent Currie says the boom is a “leap ahead in durability – as the name suggests – and versatility.” “Our aim with this boom was to provide a premium manual folding boom for tough New Zealand conditions, to last a lifetime, and to make it capable of handling other tasks.” Currie says testing of the Duraboom was “fast forwarded” on the company’s sprayer trash tester, designed to simulate the fully loaded sprayer traveling at about 20km/h while driving over a 200mm high bump. “We put the Duraboom through 30,000 cycles on our tester and it showed no sign of fatigue and only very small signs of wear. These results give us the confidence to call it Duraboom.” Buyers may specify their required options, such as laneway nozzles (to spray the fence lines of laneways while you’re travelling to and/or from a paddock), Supajet fertiliser nozzles (to in-

crease spraying efficiency and swath width while spraying liquid fertilisers), fence line nozzles, and built-in foam marker mounts making for easy fit-up later. Hustler says the Duraboom’s design has resulted in “minimal” welding, to reduce the number of fatigue points. It uses laser cut and folded components, tapered pivot pins to eliminate flogging, and hi-tensile steel to keep the weight low while not compromising durability. The autoreset breakaway is strong enough to allow spraying in hilly terrain but not so strong that damage occurs when hitting a fence or post. Nozzles are fully shielded to minimise the need for replacements. Stainless steel tubes carry the anti-drip nozzle bodies. Hustler mostly fits the Duraboom to its Target range of sprayers with capacities of 600-1000L. These have a builtin, adjustable volume Turbo agitator capable of handling fine particles and liquid fertilisers. The Duraboom can be retro-fitted to existing sprayers.

“30,000 cycles on our tester and it showed no sign of fatigue and only very small signs of wear,” says Hustler, of its new Duraboom.

Tel. 0800 487 853 www.spraysmart.co.nz or call

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Dairy News // october 25, 2011

39

machinery & products

Simple test fends off grades TONY HOPKINSON

A SIMPLE test from Food Tech Solutions checks for antibiotic residues in milk, in farm vats and silos, groups of cows or individual cows.

The vial will then show yellow or yellow/ green signifying negative, blue/green signifying ‘suspect’ positive and blue/purple signifying positive. The tests come in the form of a start-up

“No one deliberately puts antibiotics in milk but accidents can happen and with the heavy fines for infected milk this is a simple, inexpensive test to remove any doubts.”

MULTICUT R

TA RY

Reduced Maintenance Costs!

No expensive drum to rebalance and considerably less flails & bolts mean substantial savings on parts & servicing.

MULCHER

2

detects a wide range of antibiotics at or near New Zealand regulatory levels, is approved by the NZFSA for on farm testing, and is simple to use by adding milk and incubating then waiting three hours for results.

Enthusiastic about the tests is Peter Hargest, farming at Charlton, south of Gore, on a farm family-owned since 1921. Hargest has been using the testing system for six years. “No one deliberately

Peter Hargest, Southland.

The test, called Cowside II, has been used since 1978 in the US and is said to be used to test 70% of the world’s milk supply. It involves taking a measured sample of milk into a vial containing a purple agar, which is then transferred into a supplied incubator and held for three hours.

kit costing $495+GST, which includes incubator, timer, 20 test vials, pipettes and instructions. Extra test kits cost $95+GST for 20 vials. Tests costs $4.75 each. “This is a small investment for a season’s peace of mind,” says Food Tech Solutions principal Peter Bailey. The Cowside II test

3

Serious about Fencing!

More electric fence options, it just gets easier!

Multi Wire Tread-In Posts * Unique angled clip prevents unintentional tape detachment * Unique foot wedge design provides superior holding performance * Heavy duty, UV resistant polymer

Contact your local rural supplies merchant or phone 0800 266 258

“It is great to see such a well built, heavy duty machine, that will do a variety of tasks. We’re tired of light weight gear, that doesn’t stand up to our conditions. I wanted a machine to tackle rushes, maize stubble, and callies, as well as top my pasture; now I have got one” - North Island Farmer

...mulches maize

4 ... gobbles gorse

5

1

itely using less “The GMM is defin so running a 3.0m diesel and I’m al to my previous GMM compared er” - Farmer 2.3m drum mulch

Tel. 09 576 7326 info@foodtechsolutions.co.nz

Fast Ground Speed!

Compared to a flail drum mulcher that demands a slow groundspeed for effective results, your GMM Rotary mulcher has a faster ground speed that will ‘slash’ your mowing time in half!

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Rotary system requires less power than flail drum mulchers. Users have consistently reported fuel savings of up to 20%

puts antibiotics in milk but accidents can happen and with the heavy fines for infected milk this is a simple, inexpensive test to remove any doubts.”

...pulverises prunings

“It’s a great machine without a doubt. I would never go back to a flail drum for mulching – ever!” - Contractor

“Most impressive the way it tack les our Kikuyu; I started out with a good old Flailmaster slasher years ago … since then I have had a hay mow er, and then a traditional mulcher. -Now I’ve got a Flailmaster again!! It is interesting to see how things come in a FULL circle” - Northland Farmer

...rids rushes

... K.O’s Kikuyu

...prepares premium pasture


40

Dairy News // october 25, 2011

machinery & products

Proven bonus in topping

A new spin on circles in paddocks

TOPPING PASTURE to 100-

CROP CIRCLES viewed from space get a lot of people ‘going’. And now there’s a new twist: dairy effluent irrigator circles. David Field, of Woodville, in late January set up a new Spitfire VSR irrigator, and 20 minutes later it could be viewed from space, reports manufacturer Stuart Reid. “Zoom in and you can even see the effluent spraying from the nozzle.” (Download Google Earth, free, and enter in the address line the co-ordinates: minus sign 40.312543, plus sign 175.860048. David Field’s big circular holding pond with its bridge mixer can also be seen to the upper left over near the shed.) Spitfire’s new VSR irrigator changes the travelling irrigator scene for the application of animal manure, Reid says. “It retains wetted widths to 50m and uses a fully rotating boom with varying speed during the rotation to ensure an even application pattern. “Ratchets, pawls and reciprocating components have all been replaced by a cunning, simple chain drive and oval gears, and clutches are huge hex nuts and sockets for long life. The front wheel is self-steering and has a runaway brake (a blade that drops into the soil to prevent the machine from running down hills when hose loads are too small).” To page 42

150mm high ahead of cattle gives a proven result of better dry matter ratio and nutritional content, says topper manufacturer Fieldmaster. And there’s a bonus, the company says: seed head control in weed and grass species, leading to cleaner pastures without herbicide use. Meanwhile, topping behind the herd – “popular with many farmers,” says Fieldmaster – requires mowing down to 30-50mm, best performed by a purpose-built topping machine, which keeps the operator and tractor clean. This spreads manure pats, restores even grass growth, leaves no retarded patches and controls unwanted paddock weeds such as ragwort, docks, thistles, etc. Fieldmaster smaller machines include ATV-towed toppers and three point-linkage models from 1.2m wide; the largest include broadacre 4.5m wide trailing ‘bat-wing’ contour-following models. This range “gives wide choice, enabling custom matching of machine to task, terrain and tractor horsepower,” the company says. The variety allows for such customer preference as twin-belt drive or the company’s Gear-

mower 3-in-1 Multicut mulcher series – all gear drive, so no belt worries and full power transferred to the cutting edge. “Cut quality is of the highest standard; the topper range has replaceable cutter tips and tip speeds up to 5500m/min, said to better or equal anything else available. Fieldmaster says its new 3-in1 Multicut rotary mulcher/mower – versatile and productive – has become very popular because of its effectiveness in grass mowing,

and stubble and rubbish mulching – including rushes, broom, re-growth gorse, etc. The company bills it the only machine on the market that can be fitted with three different types of blades to tackle pasture management. A Huntly operator has commented “if you have a machine that will do three jobs and all you have to do is simply change the blades, that’s a good machine.” Design and construction features include modular con-

struction with 5mm or 6mm monocoque steel decks with double-skin reinforced sections, rugged, reliable drive lines and Super Ag gearboxes. The toppers are garnet blasted, zinc primed and powder coated. “Primer and topcoat are baked on for good looks and durability. Testing includes 600 hours of salt water scour testing, giving every machine the protection required to handle the extremes of the New Zealand farm environment.

Tel. 0800 500 275

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• 1500l capacity • 12m rear folding fully hydraulic boom with wing lift • 5 section Auto rate computer ISOBUS computers available • 130l/m comet diaphragm pump • Hydraulic adjustable boom height • Superior boom suspension design • Hub service operation centre with access ladder • High volume infinitely variable twin turbo mixer agitators • Auto filler with suction hose

“This boom is by far the best set-up I have come across to date” - Farm Trader

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• 800l capacity • 14m rear folding fully hydraulic boom with wing lift (12 metre also available) • 3 section electric controls • 100l/m Jacto piston pump • Hydraulic adjustable boom height • Superior boom suspension design • Large capacity mechanical agitator The master of fine Fertilisers • Auto filler with suction hose

“It is 100 times better than any other sprayer” - Tokoroa dairy farmer


Dairy News // october 25, 2011

machinery & products

‘No going back to manual’

Vario transmission and 1300rpm engine speed at 1km/h has Pukekohe hedge mulching contractor Grham Hyland sold on Fendt.

OUTSTANDING FUEL

efficiency and constantly variable transmission (CVT) seen in a friend’s Fendt 818 tractor were a drawcard for hedge mulching contractor Graham Hyland, Pukekohe. After a serial assortment of six tractors, in 2008 at National Fieldays he was ready to order a Fendt 714, reports distributor AGCO. “I’d driven a friend’s Fendt and liked them. I did a lot of homework and decided it was the one. The fuel efficiency is outstanding.” He made up his mind following a stint mowing alongside another contractor, both machines pulling 3.2m mowers. Hyland was driving an old 120hp tractor, the other man a Fendt 818 (180hp). “Mine was using 26L/h, his was on 18L/h,” Hyland says. “With the Fendt our fuel bill is now considerably lower.” And he runs the Fendt at lower revs: his does 50km/h on the road and sits at about 1600rpm. His previous tractor did 40km/h at 2300rpm.

“That’s a big fuel saving. Road speed is vital because we cover a big area, out east to Hunua and as far south as Cambridge. And the Fendt is a lot quieter and more peaceful to drive.” Hyland says he likes the comfort. “It’s got front suspension. You can spend the day in it and not feel joggled around. My previous tractor was a good machine but it was hard riding. The only

suspension was the tyres and some of the roads are pretty rough around here.” And because he has a “dodgy” left knee he likes not having to use a clutch: the Fendt’s Vario transmission is controlled by a joystick. Nine months of the year he uses the machine to cut hedges. “The transmission is ideal; you can vary the speed and never be in the wrong

gear. Previously we had our tractors fitted with creeper transmissions to be able to drive at less than 1km/h. That’s not needed with the Fendt. “It’s always in the right gear and can crawl along without creepers.

ass, proven in New Zealand.

OM

41

Target 800/8

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ONLY $6,995 + GST At last an entry level sprayer capable of handling liquid & fine particle fertilisers while still capable of general spraying. Super easy to use & great value! • 800l main tank, 80l flushing, 18l hand washing tanks • 8m DURABOOM - NZ’s toughest manual folding boom • 3 section manual controls • 60l/m Comet pump • Hi-flow turbo mixer agitator - the ultimate solution for liquid/fine fertilisers • Fully adjustable boom height • Air induction nozzles fitted standard

After hedge cutting with a Vario, there’s no way I’d go back to a manual. It’s effortless.” He likes the traction too, says AGCO. “With the Vario transmission, you can have it so it’s just driving; whereas with a

normal tractor it would break into a wheel spin and bury itself. This tractor will climb out of places you think are near impossible.” He says some people think using Fendt on hedge cutting is over-

Tel. 027 270 8027 www.agco.com.au

Investment When investing in Spraysmart you can be rest assured you are investing in a product that has been tried, tested & proven in our tough farming conditions right here in New Zealand.

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“Better value than a second hand unit” - Southland dairy farmer

kill but it makes the job easier. “I’ve been doing it a long time and at the end of a day I don’t have a sore knee or a cramped neck.”

BY

www.spraysmart.co.nz


42

Dairy News // october 25, 2011

machinery & products

Plug-in hybrid diesel heads for yards VOLVO WILL next year

in Europe start selling its V60 Plug-in Hybrid diesel car with carbon dioxide emissions below 50 g/km. Partners in the project are Volvo Car Corporation and Swedish energy supplier Vattenfall. “Our mission is to develop carbon dioxidelean cars; society is responsible for creating a sustainable future,” says Stefan Jacoby, the president and chief executive of Volvo. “This project shows how cooperation between experts in different areas brings us closer to the transition from individually carbon dioxide-lean products to a climate-smart lifestyle.” Development work has been jointly financed by Volvo and Vattenfall. This car combines the best properties of an electric car and a dieselpowered vehicle: very low fuel consumption and CO2 levels, long

range and high performance. “Average CO2 emissions and fuel consumption will be halved compared with what is available on the market today,” says Jacoby. “We’re taking a step towards our... hunt for zero emissions. In fact, when the V60 Plug-in Hybrid is run solely on electricity and recharged using renewable energy, we’ve already reached that goal.” When powered solely by electricity, the V60 Plug-in Hybrid has a range of up to 50km. The car’s total operating range is 1200km. Carbon dioxide emissions will be an average of 49g/km and fuel consumption will be 1.9L/100km. The cost of the battery pack will make the plugin hybrid more expensive to buy than a Volvo V60 with a conventional combustion engine. But fuel costs will be one-third. The cost of

Volvo’s work on the V60 Plug-in Hybrid (pictured) parallels its development of the Volvo C30 Electric, which runs entirely on electricity.

running on electricity in Sweden has been calculated at about 25 kronor ($NZ4.7)/100km. The V60 Plug-in Hybrid can be charged via a regular household

electricity socket at home or out. Charging time is about five hours if the car is recharged at home. An electric motor is almost four times as

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efficient as a regular combustion engine. Electric vehicles use relatively little electricity and the increase in consumption will be more than covered by

expansion plans for renewable energy sources in Europe. A single wind-power station, for instance, produces sufficient renewable energy to power

3000 electric cars. Volvo’s work on the V60 Plug-in Hybrid parallels its development of the Volvo C30 Electric, which runs entirely on electricity.

New spin From page 40

Reid says the rotation is still governed (so the irrigator’s speed stays constant while it applies the liquid amount that you pre-selected) but it now has ‘no-motion’, ‘end-oftravel’ and ‘low battery’ sensing. Each of these will close a valve on the rear of the machine which then gently shuts off the flow when these states are reached. And now under final development is a new ‘pulsed pressure communications’ mode which enables the irrigator to talk to the progressive cavity pump without a radio link. Says Reid, “Every five minutes or so, the irrigator partially closes its stop

valve, which creates a small pressure increase back at the pump. The pump is expecting to see this regular pulse, but if it doesn’t detect the rising pressure, it assumes a fault and shuts down. So if the irrigator has become disconnected from its hose, it will stop the pump from emptying the pond into the paddock. “All these new functions allow you to avoid the cost of a separate irrigator monitoring ‘buggy’ and greatly reduce non-compliance risk. They are an integral part of the machine itself, with no radio link.”

Tel. 04 586 3411 www.spitfire.net.nz

new ‘intelligent’ irrigato

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For agricultural use Tractor attachment

Distributed by Tulloch Farm Machines Phone For technology that works!

0800 88 55 624 www.tulloch.co.nz

• Governed: electronics control the speed along the paddock so you apply the desired amount of wat er or effluent. • Pre-selectable application dep ths are 8, 10, 12, 15, 20, 25mm of equivalent rainfall. • The boom motion is rotary with special oval gears allowing it to speed up and slow down twice per revolution. • No pawls, no ratchets or oscillati ng mechanisms. • Built-in monitoring for stopping the pump under ‘fault’ conditio ns (At the end of the run, stalled at a trough, low pressure and so on.) • Applications rates down to 8mm per hour.


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